The market for flats is experiencing a significant downturn, contrasting sharply with previous demand. Property portals report a slump in sales, with Zoopla indicating that 88% of flats listed in inner London in 2025 did not sell within six months.
Nationally, the average price for a flat has decreased by 2% over the past 12 months, marking the largest drop among all property types. Rightmove data from August shows that only 50% of flats listed for sale nationally found a buyer, compared to 65% of houses.
Factors contributing to this trend include post-pandemic shifts towards larger spaces and working from home, higher mortgage rates, and increased costs associated with property ownership such as service charges and ground rents. Inner London flats face additional challenges due to their higher prices and greater complexity.
Some flat owners, like James Schaife, have struggled to sell their properties for years, with issues including shared ownership complications and perceived overvaluation. Building safety concerns, such as unsafe cladding, also render some flats unsellable, impacting residents' ability to move on with their lives.
Complaints to the New Homes Ombudsman Service have more than tripled in a year, reaching over 1,800 in 2025-26, with defects and snagging being common issues. Developers also report rising costs for building new homes.