Since 2004 House prices in Bournemouth have seen a staggering increase of 83.6%, while flat prices have only risen by 44.6%.

Since 2004 House prices in Bournemouth have seen a staggering increase of 83.6%, while flat prices have only risen by 44.6%. This stark difference in price growth can be attributed to a variety of factors that affect the housing market in the area.

One of the reasons for the disparity in price growth between houses and flats in Bournemouth is the issue of ground rent and service charges. Many flats in the area are leasehold properties, which means that homeowners have to pay ground rent and service charges to the freeholder. These additional costs can make flats less attractive to buyers, as they add to the overall cost of owning a property.

Another factor that may be contributing to the slower growth in flat prices is the increased costs associated with maintaining and managing flats. In recent years, there has been a greater emphasis on health and safety regulations in the housing market, which has led to additional costs for landlords and property managers. These increased costs can be passed on to flat owners in the form of higher service charges, which can make flats less desirable to potential buyers.

Additionally, anti-social behaviour in some areas of Bournemouth may be deterring buyers from investing in flats. Flats are often located in densely populated areas, which can make them more susceptible to noise and disturbances from neighbours. This can be a turn-off for buyers who are looking for a peaceful and quiet living environment.

Furthermore, new build flats in Bournemouth are often sold at a premium, which can affect their resale price in the future. Developers often price new build flats higher than existing properties in order to recoup their costs and make a profit. This means that buyers who purchase new build flats may struggle to sell them at a price that reflects the initial investment, leading to slower price growth in the flat market.

In conclusion, the disparity in price growth between houses and flats in Bournemouth can be attributed to a variety of factors, including ground rent and service charges, increased costs to cover health and safety regulations, anti-social behaviour, and the premium price of new build flats. These factors have contributed to the slower growth in flat prices compared to houses in the area. As the housing market in Bournemouth continues to evolve, it will be interesting to see how these factors impact the future growth of property prices in the area.

Source home.co.uk