More flats selling at a loss amid leasehold and building safety concerns
Agents and vendors are facing struggles when it comes to selling flats across the country, says e.surv's Rob Owens.
Large proportions of flats are selling at a loss, according to new repeat-sales analysis from e.surv Chartered Surveyors.
The research found that almost four out of 10 London flats resold at a loss during the 12 months to August 2026.
London recorded the highest proportion of flats resold at a nominal loss in Britain. Around one-third of flats resold after five to 10 years in both the South East and East of England also changed hands for less than their previous purchase price.
The housing market enters the autumn moving slowly rather than decisively in either direction.”
The proportion was close to one in five across the Midlands and northern England, compared with just over one-quarter across Britain as a whole.
The longer-run e.surv House Price Index shows flats and houses beginning to pull apart around 2017, as concerns over leasehold, building safety, cladding and service charges increasingly influenced the decisions of buyers, sellers and lenders in many parts of the market.
Meanwhile, Scotland points to a different flat market with fewer than one in ten Scottish flats held for five-to-ten years sold below their previous recorded price. The gap between flats and houses in Scotland is far narrower than in London, the South East or East of England.
Softened activity
Rob Owens (pictured), Head of Research at e.surv, says: “The housing market enters the autumn moving slowly rather than decisively in either direction. Annual price growth remains positive, but shorter-term measures have softened and activity continues to face pressure from higher borrowing costs.
“Flats remain one of the clearest areas of weakness. Our repeat-sales analysis shows that this is no longer simply a gap between property-type indices: for some owners, it is being crystallised when they sell. It is important to understand more about the factors behind that performance, including building safety, tenure and service charges which should help buyers make better-informed decisions and give lenders a clearer view of the risks.
“Attention now turns to the Autumn Budget, where the government has already confirmed that the new Your First Home equity-loan scheme will feature, with remaining details still to be set out. The return of government-backed support for the new-build market could support both demand and housing delivery, but it arrives in a very different market from the early years of Help to Buy.”
