Houses Vs. Apartments in UK

The real estate market in the UK is booming. As more investors continue to capitalize on UK property, they are faced with the challenge of choosing between houses and apartments. Investors aim to acquire property with high growth potential and consistent profits for the future. To determine the type of property you should purchase, it is crucial to explore the benefits and disadvantages of buying a particular property. 

Houses are constructed to stand alone, while apartments are a part of a larger building. When deciding on the type of property you want to purchase, it all comes down to preferences and your financial circumstances.

Benefits of Houses in the UK

1. You can increase the property value

When you buy a house, you buy the land it sits on. This means that you have the creative freedom within legal restrictions to expand the house and renovate it to meet your standards from a basic structure and architecture. This increases the value of your property and guarantees profits if you decide to sell the house in the future.

2. Longer term tenancies

Families prefer houses to apartments. If you intend to buy a house for the purpose of getting tenants, you are more likely to have that house occupied faster. In addition to fast occupancy, your tenants are more likely to stay in your house for longer because families prefer to settle down in one place because moving is stressful for everyone in the family.

3. More space

Space allows better organization and provides better quality of life. Having space to comfortably accommodate your family, guests, pets, and all your possessions is a great pleasure. Space makes your house functional and open for more development.

4. Privacy

The luxury of having your own parking space and a yard in a space that only you and your loved ones have access to is understated. Houses offer privacy and the freedom to interact with your loved ones without the prying eye. 

Drawbacks of houses in the UK

1. Maintenance

Owning a house is great, but maintenance costs can be quite high. You must regularly maintain the house, keep up with repairs, and keep your yard tidy. House maintenance requires commitment because it can be energy-draining.

2. Higher initial costs

As of July 2022, the average house price in Uk was £292,000 (£39,000 than July 2021) compared to £13,750 per square meter for apartments. This high initial cost might present a valid challenge to some investors, but affordable financing options are available for foreign investors.

Benefits of apartments in UK

1. Diversification

If you are buying to let, you do not have to be in close vicinity to your property. With management companies, you can easily monitor your apartment remotely and ensure that your investment is thriving regardless of your location.

2. Easier to maintain

Typically, management companies are hired to maintain the building and the grounds. This is quite favourable for foreign investors who are not always in the vicinity. Developers arrange for management companies to take care of the common areas and handle repairs and tenant requests at an affordable rate for apartment owners.

3. More amenities

Most developers meet the demands of modern living and cater to their clients’ needs by providing hotel-grade amenities like gyms, swimming pools, co-working spaces, concierge services, and top-notch security. These amenities are attractive qualities for tenants, which increase your potential to secure longer-term tenancies.

4. High standards

Every apartment is required to meet higher levels of energy efficiency before 2025. This is a safety measure for all apartment owners and their tenants, but it ensures that your property is safe and your tenants are not inconvenienced.

Drawbacks of apartments

1. Limited creative freedom

Although you can upgrade your apartment, you cannot expand it due to space restrictions and strict building rules. 

2. Shorter tenancies

People are always looking to upgrade. Your apartment may be modern, and the rent prices may be friendly, but apartments generally have shorter tenancies compared to houses.

Whether you choose a house or an apartment, it is important to analyze the benefits and drawbacks as well as your needs.