The residential flat market in England is experiencing significant challenges, with many sellers reporting difficulty finding buyers despite price reductions and property improvements. Sellers interviewed by the Guardian described frustration with extended listing periods, failed sales negotiations, and minimal viewings. One Devon seller with a freehold flat in immaculate condition has received only four viewings in nine months after reducing the asking price from £300,000 to £280,000. A London seller has attempted to sell a leasehold flat for two and a half years with three failed sales, most recently losing a buyer over a £10,000 price dispute.
Data analysis by the property website Zoopla reveals the scale of the problem. Approximately 80.5% of leasehold flats listed for sale in 2025 had not sold within six months across most of England. Regional performance was particularly weak in London, where 87% of listed flats remained unsold, followed by the south-east at 85% and the east of England at 84%. This contrasts sharply with house price performance, which increased 43% since 2016, while flats rose only 10% over the same period.
Multiple factors contribute to the market difficulties. Leasehold controversies—including high service charges, ground rents, cladding issues, and costly lease extensions—have deterred buyers and prompted government action, though a ban on new leasehold properties is unlikely until after the next election. Additionally, a mismatch exists between buyer expectations and seller pricing, particularly among first-time buyers seeking flats as entry points into homeownership but facing investor-priced properties above their budgets. In London, investor-owned flats are priced around £450,000 while first-time buyer budgets average £425,000.
Tightened mortgage lending practices further restrict market activity. Banks increasingly apply restrictive rules to properties with certain characteristics, and surveyors frequently downvalue flats, requiring additional price cuts. These combined pressures have affected both owner-occupiers and small landlords attempting to exit the rental sector, leaving some with no option but to continue renting properties despite negative experiences.
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