Flats, once a staple of the UK housing market, are now getting the cold shoulder from buyers.
We analysed the likelihood of each property type selling between Q1 2024 and Q3 2026. For flats, the findings make for bleak reading. They are now the hardest property type to find a buyer for. The likelihood of a flat selling in 2026 is just 41.2%, down from 44.2% in 2025, and a peak of 54.2% in 2022. This means that in 2026, three in five flats bought to market will not sell.
When we compare this to houses, detached and semi-detached properties are seeing their likelihood of selling rise. The chance of selling a detached property is up from 47.3% in 2024 to 50.0% in 2026. For a semi-detached property, the chance of selling in 2026 is 62.3%, up from 61.7% two years prior.
Conversely, terraced houses saw a dip in likelihood to sell, from 62.8% in 2024 to 61.7% in 2026. While the appeal of the terrace house has waned, the decline has been far less pronounced than that seen in flats.
So, why are flats now the hardest to sell? This is happening for a myriad of reasons:
Since the Grenfell Tower fire, flats have been firmly under the microscope when it comes to building safety. For some owners, unresolved cladding and fire safety issues are making properties difficult to sell, with some facing lengthy delays while remediation is completed. The Property Institute has suggested it could take a decade for some private house builders to complete cladding remediation.
For any flats affected by building safety issues, it can be tricky for a vendor to find a law firm to carry out the transaction. Buildings covered by the Building Safety Act 2022 create complexities for conveyancers, with some firms refusing to take on affected transactions because of the legal and professional risks involved. Lenders, meanwhile, require evidence, through EWS1 forms, that a building’s external wall system is safe before approving a mortgage. What’s more, insurance premiums are through the roof for any flats affected by the cladding crisis; another financial burden that is deterring buyers.
Service charges have been rising, creating another barrier for flat buyers. Lenders will typically refuse to finance a flat where the service charge is at or above 1% of its value, a threshold that research from Hamptons found applies to 37% of flats. Analysis from property management firm Rushbrook found that leasehold service charges have risen a third in the past five years.
Leasehold owners have also raised concerns about over-inflated ground rent, with MPs pushing the Government to bring forward its proposed £250-a-year ground rent cap and kintroduce it in 2027 rather than waiting until 2028. Many lenders are appropriately wary around doubling ground rent clauses, where the ground rent multiplies by two at set, regular intervals such as 10, 15 or 25 years.
The lease itself can be another stumbling block. Buyers are becoming more cautious about how many years are left and how much it could cost to extend. A lease approaching 80 years is an instant red flag to both buyers and lenders. Some lenders impose a minimum lease length, making shorter leases harder to mortgage and sell.
An absentee freeholder can add another layer of difficulty, making it harder to negotiate lease extensions, resolve disputes or obtain information to sell. Other complications such as restrictive lease terms, unusual clauses and unclear repair responsibilities can all make flats less attractive to prospective buyers.
A buyer may be keen, but initial interest in a flat can quickly disappear once the buyer’s solicitor or lender raises concerns.
Brits are moving far less often than previous generations. Government research shows that housing mobility has declined steadily since the early 1990s. Flats were traditionally a popular first step onto the property ladder, but rising costs and the financial pressure of moving up mean buyers are increasingly wary of getting stuck in one.
For some first-time buyers, that makes going straight for a house more appealing if they can afford it. There has also been a social change since the pandemic, with more people prioritising space, gardens and larger homes. Increased hybrid and work-from-home jobs in the market mean there is less need to live in central cities.
We reported on how over 500 landlords are leaving the private rental sector per day. The increased regulations from the Renters’ Rights Act are deterring landlords from increasing their portfolios. A flat that may have perhaps been bought by a small landlord is now sitting on the market with little interest.
For flat-owners looking to sell, the reality is they face a tough battle. In recent years, headlines have been filled with stories of leaseholders trapped in properties they cannot sell, whether due to eye-watering service charges, unresolved building safety issues or complications buried in the lease.
Even when a seller finds a willing buyer, the lender can become the stumbling block. Commercial premises beneath the flat, cladding concerns, short leases and unpredictable service charges can all raise questions about whether the property represents suitable security for a loan. A July 2026 Propertymark survey of leaseholders and member agents found that more than half of agents who had struggled to sell a cladding-affected flat cited the obstacle as a lender refusing to lend, rather than a buyer changing their mind.
While agents cannot resolve issues related to a leasehold property, they can take steps to identify potential barriers early and reduce the risk of a sale stalling further down the line.
Flats will be a hard sell for the foreseeable. It’s important that agents do all that they can in their power to present information to buyers as early as possible to prevent delays or price renegotiations.
The sad truth is that the humble flat is increasingly losing its appeal. It is weighed down by a raft of costly complications that are, unfortunately, sending buyers running for the hills.