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Flats in favour as interest rates rise

Flats are regaining their popularity with would-be buyers, as mortgage rates put many more homes out of reach.

Some 27% are seeking one or two-bedroom flats, according to Zoopla, compared with 22% at this time last year.

In London, one and two-bedroom flats now account for 49% of demand, up from 42% a year ago.

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