More flats selling at a loss amid leasehold and building safety concerns
Summary
New repeat-sales analysis from e.surv Chartered Surveyors suggests that a significant share of flats, especially in London, are being resold at a nominal loss. The article links this weakness to leasehold issues, building safety concerns, cladding, service charges and higher borrowing costs, while noting that Scotland shows a narrower gap between flat and house performance.
Why it matters
Surveyors may see these factors affecting comparable evidence, valuation assumptions and buyer sentiment for flats, particularly where tenure, service charge liabilities or building safety issues are material. The findings also reinforce the need to assess local market conditions carefully when advising lenders and purchasers.
Key points
- Almost four in 10 London flats resold at a loss in the 12 months to August 2026.
- Around one-third of flats in the South East and East of England resold after five to 10 years for less than their previous purchase price.
- e.surv says flats and houses have diverged since around 2017 amid leasehold, building safety, cladding and service charge concerns.
- Higher borrowing costs are continuing to दबress activity and soften short-term market measures.
- The Autumn Budget may include details of the new Your First Home equity-loan scheme.
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