Across most of England, the majority of leasehold flats listed for sale in 2025 have not found buyers within six months, according to data from property website Zoopla. In London, approximately 87% of listed flats remain unsold after six months, followed by the south-east at 85% and the east of England at 84%, with a national average of 80.5%.
The data reveals a widening gap between flats and houses in the property market. Whilst average house prices have increased 43% since 2016 across the UK, flats have risen by just 10% over the same period. Zoopla attributes this disparity partly to uncertainty surrounding leasehold ownership in England.
Pricing mismatch hampering sales
Richard Donnell, executive director at Zoopla, identifies a fundamental pricing disconnect between buyers and sellers. “Flats take longer to find buyers because the natural buyer (the first-time buyer) and the natural seller (often an investor with no urgency to move) may want two different prices,” he says.
In London, most first-time buyers seek flats as their main route into ownership, but investor-owned properties are typically priced at £450,000, above the average first-time buyer budget of £425,000. This pricing gap is contributing to broader market stagnation affecting property transactions.
Individual sellers report significant difficulties. One Devon property owner has reduced her asking price from £300,000 to £280,000 and received only four viewings in nine months, despite the flat being freehold. Another seller in London has been attempting to sell for two and a half years, with the sale price dropping from an initial £200,000 purchase to £145,000.
Leasehold concerns and lending restrictions
Most flats listed for sale in England are leasehold, a form of ownership that has been subject to multiple controversies including high service charges, ground rents, one-off bills, cladding issues, and difficulties with lease extensions and freehold purchases. These concerns have prompted government action, though a ban on new leasehold properties in England and Wales is unlikely to come into force until after the next election.
According to mortgage broker Cleerly, thousands of prospective homeowners are being excluded from the flats market due to increasingly restrictive mortgage lending rules from banks. This compounds the challenges facing both sellers attempting to exit the market and landlords looking to divest from the rental sector.
Market implications
The prolonged selling times and price reductions suggest a structural shift in the English flats market. Some sellers are now considering removing properties from the market temporarily or converting to rental properties rather than accepting further price cuts. The combination of leasehold uncertainty, pricing mismatches between buyers and sellers, and tighter lending criteria appears to be creating a sustained period of reduced liquidity in the flats segment of the property market.
