The price gap between flats and houses has reached its widest level in more than three decades, creating opportunities for buyers and investors prepared to look beyond traditional family homes, according to new research from Zoopla.

The property portal found that flats are now around 40% cheaper than houses on average – the largest discount since its records began. The average flat now costs £191,300, compared with £319,500 for a house, leaving a difference of more than £128,000.

Zoopla said the gap has widened as demand for larger homes with outside space has remained strong since the pandemic, while flats have been affected by affordability pressures, concerns over service charges and building safety, and uncertainty surrounding leasehold ownership.

Despite this, the report suggests flats could represent good value for buyers who are prepared to take a longer-term view. Lower purchase prices make them more accessible for first-time buyers, while investors may benefit from attractive rental yields and the potential for stronger capital growth if demand recovers.

Richard Donnell, Executive Director at Zoopla, said: “Flats are now the best value they have been for 30 years. Buyers who can compromise on space can secure significant savings compared with purchasing a house.”

Zoopla believes improving affordability, together with proposed leasehold reforms and falling mortgage rates, could encourage renewed demand for flats, particularly in cities and higher-value markets where the price gap is most pronounced.