‘The market is dead’: why aren’t flats in England selling?
Flat owners in England are struggling to sell, often after cutting asking prices and enduring repeated failed sales, despite some properties being renovated or in desirable locations. The situation is limiting people’s ability to move, including families needing larger homes, and is prompting some sellers to consider withdrawing properties or renting them out instead.
Guardian readers described long waits for few viewings and significant reductions: one Devon seller cut a freehold flat from a £300,000 purchase price to £280,000, while a London owner saw a proposed sale of a £200,000 flat fall through at £145,000. Zoopla said UK house prices had risen 43% since 2016, compared with 10% for flats, linking the weaker performance partly to uncertainty around England’s leasehold system; most flats for sale are leasehold.
In short
- Flats are taking longer to sell, even after price cuts.
- Leasehold uncertainty is weighing on demand and values.
- Some sellers face losses, failed deals and delayed moves.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Those who see a serious market failure argue that many leasehold flats have become effectively unmarketable because buyers face unpredictable service charges, costly building-safety works, restrictive lease terms and difficulty obtaining mortgages. They contend that substantial price cuts cannot overcome uncertainty about future liabilities, leaving existing owners trapped and undermining confidence in a major part of the housing market. On this view, stronger reform and clearer protections are needed to restore fairness between leaseholders, lenders and freeholders.
The case against
Others argue that slower flat sales reflect a necessary repricing rather than a market being permanently dead. Higher borrowing costs, changing demand after the pandemic and greater scrutiny of leasehold risks mean buyers are rationally favouring homes with lower running costs or more space, while well-priced flats in sound buildings can still sell. They may argue that intervention should avoid artificially sustaining values, and that transparent information and gradual market adjustment are preferable to measures that shift risk or cost elsewhere.
Explained simply
Most flats in England are sold on a leasehold basis: the buyer owns the right to live in the property for a set period, while the land and building are usually owned by a freeholder. Leaseholders may also have to pay service charges for maintaining shared areas, and uncertainty about lease terms and costs can affect what buyers are willing to pay.
Flats and houses have not seen the same price growth in recent years. Zoopla says UK house prices rose by 43% from 2016, compared with 10% for flats, and links flats’ weaker performance partly to concerns about leasehold ownership. A slower market can leave sellers unable to move when their housing needs change, while some may weigh renting out their flat or taking it off the market.