Houses are back as the buyers shun new flats

Houses are making a comeback as buyers turn their backs on "little box" apartments.

The National House-Building Council today said family houses accounted for nearly a quarter of all residential properties started in England in the first nine months of the year, the highest level since 1992.

Demand for flats is heading in the other direction with apartments making up about 40% of properties started, the lowest level for six years.

However, flats still play a significant role in London due to a lack of space although increasing numbers commute into the capital from "leafy" suburbs or beyond.

Alistair Leitch, finance director at housebuilder Bellway, told Bloomberg: "Most people dream of having a front garden and a back garden with a little bit of security around them. They don't want to have to park their car 50 yards from home."

Builders rushed to build flats as the Government encouraged high-density developments on disused sites in towns and cities across the country.

They are returning to building private family homes as living habits change and banks restrict lending to buy-to-let investors who snapped up new apartments before the housing crash.

Richard Donnell, at property website Hometrack, said demand for flats among buy-to-let investors has "largely gone".