17, May, 2022, LONDON –

The average cost of a two-bed city centre flat in the UK has fallen to £238,000, a £16,000 drop from 2020’s average of £254,000 according to new research by personal finance comparison website finder.com.

WIth a cost per square metre of £4,019, the UK has slid seven places down from 2020’s 13th place to now being the 20th most expensive nation to buy a central flat. Currently, the prices are 42% above the global average (£167,000).

Across Europe, the UK is placed as the 9th most expensive European country, behind Austria (£258,000) and the Netherlands (£269,000). Luxembourg has topped the list as the most expensive European country at £584,000 – 249% more than the global average.

Despite the UK falling down the global ranks, further analysis revealed the average cost of a two-bed city centre flat in London is an extortionate £814,000 – this is almost five times more (387%) than the global average of £167,000!

Currently, this makes the capital the most expensive city to buy a two-bed flat in Europe – over three times more (251%) expensive than the European average of £232,000. Out of the top most expensive cities, London is ranked as the 8th most expensive city in the world to buy a two-bed city centre flat.

Globally, 3 countries in Asia have the highest prices in the world. Hong Kong is the costliest country for buying a city centre flat, where a two-bed apartment would set you back a whopping £1,566,000. This is followed by Singapore at £987,000 and South Korea at £703,000.
Egypt is the cheapest country out of the 106 nations, where a two-bed city centre flat only costs £30,000 on average.

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, Michelle Stevens, Mortgage specialist at finder.com said:

“While the UK housing market in general has been growing rapidly over the past year, looking at our research , the fact that the average UK price for a city centre flat has dropped in the ranks is good news compared to our pricier global counterparts. However, London remains to be very much the exception to this rule, with a central flat increasingly being out of reach for almost all young first-time buyers trying to get a foot on the property ladder.

“However, there are various ways that first-time buyers can get assistance. Home ownership assistance schemes such as the lifetime ISA can allow you to earn tax-free interest, and the government also adds 25% to your savings of up to £4,000 a year, 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.”

Methodology:

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.