Flat prices have fallen by more than 2% over the past year while every major house type has increased in value, according to analysis of Land Registry data.
Research by SAM Conveyancing puts the average flat and maisonette price at £216,246 in June 2026, down 2.27% compared with a year earlier.
Over five years, the analysis suggests flat values have fallen by 1.56%, contrasting with the growth recorded by houses over the same period.
Semi-detached homes recorded the strongest annual performance, rising 3.16% to an average £285,618.
HOUSES OUTPERFORM
Terraced house prices increased by 2.76% year-on-year to £240,147, while detached properties rose 1.98% to an average £463,547.
SAM Conveyancing believes the divergence partly reflects the additional legal and financial considerations facing buyers of leasehold flats.
Andrew Boast, Chief Executive Officer of SAM Conveyancing, says: “The fall in value across the leasehold sector is mirrored exactly by the rise in headaches for owners and prospective buyers.
“We are seeing transactions stall on a daily basis because of delayed leasehold reforms and the sheer complexity of Building Safety Act compliance, ground rent clauses, lease terms and mortgagee protection clauses. Buyers are no longer just looking at the asking price, they are actively factoring in the legal risks and future liabilities.”
LEASEHOLD CONCERNS
Boast argues that lender scrutiny of lease terms is also making some flat purchases more complicated.
He adds: “Lenders are heavily scrutinising ground rent terms and insisting on strict mortgagee protection clauses.
“When you combine this with aggressive freeholder controls, escalating service charges, and unresolved cladding liabilities, many flats are becoming borderline unmortgageable without significant legal remediation. It is no surprise that buyers are pivoting toward the security and autonomy of a freehold house.”
SAM Conveyancing says the divergence means sellers of flats may need to be particularly realistic about pricing as buyers weigh up service charges, lease terms and other potential liabilities alongside the purchase price.
