The graph that shows the reality of Britain’s broken housing market
The graph that shows the reality of Britain’s broken housing market
Maya Wilson-AutzenThu, June 18, 2026 at 6:00 AM UTC
0
House-to-flat price ratio
Britain's housing market is grinding to a halt – and new analysis points to the reason why.
The average house cost 1.7 times the price of a flat in April, the widest gap in 30 years, analysis by property website Zoopla found.
Across the UK, the average flat cost £193,000, but houses sold for an average of £327,000.
Experts said the growing gap had affected the ability to "trade up" from a flat to a house, meaning thousands of homeowners could be trapped in their properties.
The figures also showed the average value of a house had risen 43pc since 2016. In contrast, flat prices had increased by just 10pc.
Richard Donnell, of Zoopla, said: "The widening gap matters most for the millions of leasehold flat owners in England who have seen their asset underperform significantly compared to houses.
"For many who bought a flat as a stepping stone to a house, the gap between the two has widened rather than narrowed, which impacts people's ability to trade up."
The figures reveal the damaging effect that the leasehold system has had on flats sales in the UK, Zoopla added. Four in five flats listed for sale in England were leasehold in April, according to Land Registry data.
The typical leaseholder paid £200 a year in ground rent and £1,900 a year in service charges between 2023 and 2025 – a combined £2,100 a year, Zoopla found.
Thanks to these costs, flats also took longer to sell. Flats in Scotland sold after an average of 16 days between March and May, soaring to 46-47 days in England.
Mr Donnell 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.
"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.
"Leasehold sales fell to their lowest level since 2008 last year."
Advertisement
However government legislation, such as higher stamp duty and the introduction of the Renters' Rights Act, had also diminished the demand for flats, experts said.
Lucian Cook, of estate agency Savills, said: "Flats are typically bought by first-time buyers and buy-to-let investors. Clearly, buy-to-let investors are under significant pressure, so that's massively reduced demand as well as meaning more flats have been brought to the market."
Labour increased the stamp duty surcharge on additional homes to 5pc last year and introduced a raft of rental reforms on May 1.
Rachel Reeves, the Chancellor, also opted to end the stamp duty holiday, reducing the threshold at which first-time buyers start paying the levy down to £300,000.
Mr Cook added that demand for flats among first-time buyers had also dwindled because they were increasingly opting to buy family houses.
The gap between the cost of a flat and a house was widest in the Midlands and the North, where houses were affordable enough that many first-time buyers skipped flats entirely.
Outside London, a house cost 2.3 times the price of a flat, up from 1.8 times in 2016.
Labour laid out its plans for the Commonhold and Leasehold Reform Bill in the King's Speech last month.
Ground rents have already been banned on new leases, but little has been done to control spiralling service charges.
One of London's biggest housebuilders recently offered to cover leaseholders' service charge bills in an effort to drum up more buyer interest.
Berkeley, a London and South East-focused developer, said buyers would benefit from a two-year "service charge holiday", which could range from £400 to £5,000 a year.
A government spokesman said: "The Renters' Rights Act supports buy-to-let investors by making sure landlords have the stability they need to invest in the sector and there is no evidence that it has an impact on supply."
Try full access to The Telegraph free today. Unlock their award-winning website and essential news app, plus useful tools and expert guides for your money, health and holidays.
Source: “AOL Money”
