Flat-out affordable: The widest flat-house price gap for 30 years

The gap between flat and house prices is at its widest for 30 years. The average house now costs 1.7 times the price of a flat. In monetary terms, a typical flat costs £193,000, compared to £327,000 for a typical house.

Contrasting price growth in the last decade has made the gap more pronounced. While house prices increased 43% since 2016, flats prices rose just over 10% in the same period. 

Half price flats almost everywhere

The house-flat ratio is widest outside of London. When you exclude the capital, a house is 2.3 times the price of a flat - up from 1.8 times in 2016.

The most extreme house-flat ratio is in the West Midlands, where a house costs 2.5 times the price of a flat. This ratio was just 1.8 times in 2016.

An abundance of flats and an average house price that excludes many buyers has kept London’s house-flat ratio in check. With a house costing 1.9 times more than a flat, it’s the joint smallest ratio.

Also with a 1.9 times house-flat ratio is Scotland. This ratio has barely moved in 30 years, with a 0.1 times increase between 2016 and 2026.

Average flat and house prices by region 

South of England

Midlands, North and Wales

Scotland (no long leasehold system)

Leasehold spectre makes flats slow to sell

Across the UK, flats take 8 days longer to sell than houses in the same market. But there’s a stark difference when you compare timescales in different countries. 

Flats take an average of 42 days to sell in England and Wales. This compares to 33 days for houses.

In Scotland, houses and flats both take an average of 15 days to sell. Not only does this reflect Scotland’s different approach to sales, it also reflects the absence of leasehold flats.

Average flat and house time to sell by region: March-May 2026 

Where homes are on the market for less than 6 months. 

 Scotland clearly demonstrates that flats are not the problem but leaseholds are. Leasehold complexities and uncertainty make English and Welsh buyers hesitant. And in regions where the cost of a house is relatively affordable, many purchasers overlook leasehold flats completely. 

Extra costs deter buyers 

More expensive conveyancing fees, service charges, ground rent and lease extension costs put buyers off. The latter is significant as around a fifth of leasehold listings have less than 100 years on the lease.

And there’s a lesser known drawback. Lenders can refuse a mortgage where the annual running costs, which include service charges and ground rent, exceed 1% of the property’s value.

Advantage affordability: value should be highlighted

Now is the perfect time to frame flats as a generational, affordable opportunity. Flats are 40% cheaper to buy than houses: the best value they’ve been for 30 years. In contrast, the value of terraced, semi and detached homes has increased, as detailed in our June House Price Index.

Richard Donnell, Executive Director at Zoopla, said:

“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. This complexity is not the same as risk, and that’s where agents can use their knowledge and position to reassure buyers.”

“When purchasers feel supported and understand the leasehold system, they will 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. Once understood, lingering flat stock will start to gain interest."

Reform is on your side

You can boost consumer confidence by explaining the benefits of the Commonhold and Leasehold Reform Bill. Royal Assent is targeted for as soon as 2027. This paves the way for a £250 ground rent cap, an easier transition from leasehold to commonhold, new flats being built as freehold and the end of the forfeiture regime.

Build upfront transparency 

The price of flats is competitive enough to generate enquiries. Yet friction – and eventually fall throughs – can occur when conveyancing reveals leasehold intricacies.

Agents can overcome buyer hesitation by preparing a leasehold information pack before listing the property. Explaining the leasehold process clearly and promoting the benefits of active reform also help.

5 leasehold essentials to increase sales success

1. Lease length: establish how long the lease has left and present an estimate of how much the lease may cost to extend.

2. Service charges: obtain three years of historical service charges and show proof of major building works.

3. Ground rent: disclose how much the annual ground rent is, noting if there are any escalating or doubling clauses.

4. Building safety: show evidence of an EWS1 certificate if a flat is in a building 11 metres or taller.

5. Leasehold reforms: actively promote the leasehold reforms that will transform this ownership structure