For immediate release
UK city centre flats cost twice as much as in the US and £100,000 more than Europe
- UK is the 16th most expensive nation in the world for a city centre flat
- Brits could buy five flats in central Manchester for the price of one in London (£144,000 v £788,000)
- Hong Kong is the world’s priciest country (£1.3 million on average), while Egypt is the cheapest (£27,000)
17 September, 2018, LONDON –
Research from personal finance comparison website finder.com reveals that the average price for a two-bed city centre flat in the UK is £227,000 – almost £100,000 more than in Europe (£131,000) and over double the US average of £111,000.
With a cost per square metre of £3,839, the UK is the 16th most expensive nation(s) in the world for a central flat, with prices 52% above the global average.
London is far more expensive than the rest of the UK, with a central flat generally costing buyers over four times more than the UK average. The average price of a two-bed flat in the capital is £788,000, or £13,328 per square metre, making it the world’s second most expensive city to buy an apartment in, after Hong Kong.
However, August saw the biggest month-on-month drop in UK house prices in six years, fuelled by uncertainty over the housing market and Brexit, while BofE Governor Mark Carney has suggested that a ‘no deal’ Brexit could see house prices drop by a third. So both London and the UK may slide down these rankings.
Globally, the costliest country for buying a city centre flat is Hong Kong, where a two-bed apartment would set you back £1,280,000. This is followed by Singapore at £781,000 and Switzerland at £543,000.
After Hong Kong, London and Singapore, the most expensive cities in the world for urban flats are Beijing at £676,000, Zurich at £670,000 and Shanghai at £667,000.
The cheapest nation of the 91 countries with available data is Egypt. Here a two-bed city centre flat only costs £27,000 on average. The cheapest city is Sumy in Ukraine, where a flat would cost £20,000.
The 10 most expensive countries for city centre flats
|Country||Average price per square metre for city centre flat||Price for two-bed flat|
To see the full list of average flat prices by country and city, alongside an interactive map, visit: https://www.finder.com/uk/world-cost-of-a-flat
Speaking about the findings, Jon Ostler, CEO at finder.com said: “These statistics show that prices for a city centre flat in the UK are generally comparable to our European and global counterparts. London is very much the exception to this rule though, with a central flat being out of reach for almost all young Brits trying to get a foot on the property ladder.
“If you’re a first-time buyer looking to purchase a flat or house, there are various ways that you can get assistance. Help to buy schemes allow you to earn tax-free interest, and the government also adds 25% to your savings (up to £3,000), which is a no-brainer if you’re serious about purchasing. People are increasingly looking at shared-ownership as well. This allows you to purchase part of a flat from a housing association and will result in a lower deposit and monthly payments. You can then purchase more of the flat as and when you’re able to.”
The price per square metre for a city-centre flat in each country was taken from cost-of-living site Numbeo. Countries not included in its table weren’t used in this analysis.
The median area of a two-bed flat in the UK, according to a 2010 dwelling size survey, is 59.11 square metres. Therefore each price per square metre was multiplied by 59.11 to get the cost of a two-bed flat in each country.
The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com's review pages for the current correct values.
finder.com is a personal finance website, which helps consumers compare products online so they can make better informed decisions. Consumers can visit the website to compare utilities, mortgages, credit cards, insurance products, shopping voucher codes, and so much more before choosing the option that best suits their needs.
Best of all, finder.com is completely free to use. We’re not a bank or insurer, nor are we owned by one, and we are not a product issuer or a credit provider. We’re not affiliated with any one institution or outlet, so it’s genuine advice from a team of experts who care about helping you find better.
finder.com launched in the UK in February 2017 and is privately owned and self-funded by two Australian entrepreneurs – Fred Schebesta and Frank Restuccia – who successfully grew finder.com.au to be Australia's most visited personal finance website (Source: Experian Hitwise).