House prices now 1.7-times flat prices as gap hits 30-year high – Zoopla

In London, it was 45 days for a flat versus 37 days for a house.

Zoopla’s analysis also showed that average leasehold running costs range from 0.7% to 1.3% of property value a year. 

Richard Donnell, executive director at Zoopla, said: “The gap between house and flat prices has never been wider, and for buyers who are prepared to do their homework, that presents an opportunity. 

“For many, flats remain the main route into home ownership, particularly in London and the South East where the cost of buying a house is higher.

“Buying a leasehold flat is more complex than buying a house – lease length, service charges and ground rent terms all matter and vary significantly from one property to the next.”

Donnell added: “This complexity is not the same as risk, and the leasehold system is being actively reformed. 

“Buyers who invest time to research and understand the system and get support can take advantage of the gap between flat and house prices. 

“A well-managed building with a long lease and stable service charges is a very different proposition from a property with less clarity on service charges and a short lease.”

Nathan Emerson, chief executive at Propertymark, said: “The widening gap between house and flat prices reflects changing buyer priorities and growing differences in demand across the housing market. 

“While demand for larger homes and outdoor space has remained strong, flats have faced additional pressures that have impacted both values and buyer confidence.

“Flats continue to offer an important and often more affordable route into homeownership, particularly for first-time buyers.”

Emerson added: “However, purchasers are increasingly factoring in leasehold arrangements, service charges, building safety considerations and other ongoing costs when making decisions.

“The contrast between Scotland and England is particularly noteworthy. 

“The relative stability in Scotland suggests that simpler ownership structures can help support buyer confidence and maintain demand for flats over the longer term.”

He said: “These findings also highlight the significant regional differences that exist across the UK housing market. 

“While affordability remains a challenge in London and parts of southern England, many areas across the Midlands, the North of England and Scotland continue to offer realistic opportunities for people looking to get onto the property ladder.

“Looking ahead, reforms designed to improve transparency and simplify ownership arrangements could help strengthen confidence in the flats market and support greater housing mobility for future buyers.”