The residential flat market across England faces significant headwinds, with property listings struggling to attract buyers and sales falling through repeatedly. Several homeowners shared experiences of extended selling timelines, with some having attempted to dispose of properties for years without success. Contributing factors include price mismatches between sellers’ asking prices and buyers’ budgets, as well as structural issues within the leasehold system that dominates English flat ownership.
Data analysis from property website Zoopla reveals that approximately 80.5% of leasehold flats listed for sale in 2025 had not sold within six months across England. Regional variations show even more pronounced challenges in major markets, with London experiencing the worst performance at approximately 87% unsold, followed by the south-east at 85% and the east of England at 84%. In comparison, house prices have risen 43% since 2016, while flats have increased only 10% over the same period, reflecting investor caution about the property type.
The leasehold system, which applies to most flats in England, has faced mounting controversies surrounding high service charges, ground rent escalations, cladding issues, costly lease extensions, and difficulties acquiring freeholds. These ongoing concerns have prompted government consideration of a leasehold ban, though implementation is unlikely before the next election. The associated uncertainty is actively suppressing flat values and extending time-on-market periods relative to freehold houses.
Additional barriers to flat sales include a mismatch between seller pricing and buyer budgets. In London, for instance, investor-owned flats typically exceed first-time buyer budgets, even though flats represent the primary entry point into homeownership for that demographic. Banks have simultaneously tightened mortgage lending criteria for flats, while surveyors increasingly apply downward valuations to properties, further restricting financing options. These combined pressures have left some sellers with limited options beyond reducing prices substantially or withdrawing properties from the market temporarily.
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