House or flat: which makes the better investment?

There is no universal winner. Buy for location, demand, numbers and exit.

It’s tempting to reduce the decision to property type, but the numbers only tell part of the story.

Recent Zoopla data highlighted that 4 in 5 flats were still unsold after around six months, while houses sell around 8 days faster than flats on average across the UK. On paper, that might favour houses. In practice, location can completely change the investment case.

A centrally located flat may benefit from strong tenant demand, transport links, local amenities and a lifestyle that buyers actively want. Equally, houses can provide greater space, flexibility, control over costs and scope to extend or add value.

So rather than simply asking “house or flat?”, we believe investors should be asking: where is it? Who wants it? What do the numbers return? And who is likely to buy it when you exit?

There is no universal winner. Buy for location, demand, numbers and exit.