Flats hold ground against houses as workers return

DEMAND to buy houses is falling more sharply than for flats, in a reversal of the pandemic-era “race for space”, as high mortgage rates hinder affordability.

Inquiries from prospective buyers are down 47 per cent for houses since the mini-Budget in September, compared with a 42 per cent fall for flats, according to property website Zoopla.

The biggest decline in demand for houses was in the South East, where inquiries slumped 52 per cent. The decline for flats was 45 per cent. In London and the West Midlands there were also large falls in inquiries for houses.

The biggest gap in demand was in the North East, with slumps of 33 per cent for houses and 11 per cent for flats.

Agreed sales for houses have been 16.5 per cent lower this month than in the same period in 2019, compared with a 1.6 per cent drop for flats, according to data from TwentyCi, an analyst.

Mortgage rates spiked following the market backlash to the mini-Budget. Before then, the average five-year fix was 4.75 per cent, which peaked at 6.51 per cent on Oct 20, said Moneyfacts.