A quarter of flats sell at a loss

More than a quarter of flats sold across Great Britain in 2025/26 after five to 10 years of ownership fetched less than their previous purchase price.

In London, even that length of time left almost four in 10 flat sellers accepting less than they had paid.

The figures, from e.surv’s October house price report, show flats were more likely than houses to sell below their previous recorded price in every region.

Among London houses held for the same period, fewer than 4% sold at a loss.

Flat ownership under scrutiny

The report says: “Scotland has a different framework for owning and managing flats from the leasehold structure prevalent in England and Wales.

“The much smaller gap between flats and houses does not prove that tenure is the cause.”

The report added: “But it does suggest that weaker flat outcomes may not be explained simply by flats being flats — smaller homes, different buyer demand or their concentration in urban markets.

“The way flats are owned and managed may also matter.”

Losses beyond London

Around a third of flats in the South East and East of England sold for less than their previous purchase price after being held for five to 10 years.

The research compared repeat sales using HM Land Registry and Registers of Scotland data.

Across the Midlands and North, the proportion was closer to one in five, while Scotland recorded fewer than one in 10.

Longer ownership did not eliminate losses and across Great Britain, 16.6% of flats resold after 10 to 15 years fetched less than their previous recorded price, compared with 1.9% of houses.

September house prices dip

Meanwhile, the average home price across Great Britain stood at £328,900 in September, down 0.2% over both the month and the quarter.

Quarterly growth had turned negative in August, having remained positive through spring and early summer.

Prices were still 1.5% higher than a year earlier, although annual growth had slowed from 2.5% in May.

Scotland led annual growth at 3.5%, while London was the only region recording a fall, with prices down 2.3%.