Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Hill Group CEO: Better Flats Needed to Revive UK Housing Market

Restoring confidence in flats among first-time buyers is essential for the UK housing market to regain momentum, according to Andy Hill, CEO of Hill Group. Hill’s comments come as the flat market continues to underperform compared to the wider housing sector.

Hill stated that flats were once the first step on the property ladder for many buyers, but have fallen out of favour in recent years. He highlighted that many first-time buyers now look to move further out to purchase small houses instead of flats.

Research from Zoopla, cited in the report, shows that since 2016, the average price of a house has risen by 43%, while flat prices have increased by just 10%. Hill attributed the decline in flat popularity over the past decade to fire safety concerns following the Grenfell tragedy and dissatisfaction with the leasehold system.

Hill also said that the quality of flats needs to improve and that developers must respond to changing buyer expectations. He emphasised the importance of getting apartment living back on the agenda as a good option, particularly for building homes close to railway stations.

Reflecting on lessons from the Covid pandemic, Hill noted that future flats should include personal outside space, recognising its importance for residents.

For letting agents and inventory clerks, these developments highlight ongoing shifts in buyer and tenant preferences, as well as the need for improved standards and features in the UK flat market.