Flats Offer Their Biggest Price Advantage Over Houses in 30 Years

With the average UK flat costing substantially less than a house, apartments may offer an increasingly accessible path to homeownership—provided buyers carefully examine lease terms, service charges and building management.

Finances squeezed or love a deal? Flats should be first on your list. Why? Despite the cost of all property types increasing in the last decade, flats are the best value they’ve been for 30 years.

How much cheaper is a flat?

The price of a flat has increased just over 10% since 2016. In contrast, the price of a house went up 43% in the same period.

What does that look like in monetary terms?

The average UK house now costs £327,000 – 1.7 times more than a flat. In comparison, a typical flat now costs £193,000.

Average flat and house prices by region

The price gap depends on your location.

South of England

Many Londoners are priced out of the house market and have no option but to purchase a flat. The cost of houses, together with a healthy supply of flats, keeps the capital’s house-flat ratio low at 1.9.

North, Midlands and Wales

The reverse is true in the Midlands, Wales and Northern regions, where the house-flat ratio peaks at 2.5. Despite this, flats are often overlooked completely as houses are relatively affordable.

Scotland (No long leasehold system)

The Scottish market is unique as flats, like houses, are freehold with no ground rent. This level playing field is clear, as the house-flat ratio has barely moved in a decade.

Flats in Scotland are appealing, selling in an average of 15 days – the same amount of time as houses. This compares to flats selling in an average of 42 days across the rest of the UK.

Mind the gap: why flat values have risen modestly

It’s tempting to dive in and make an offer when the average flat in England and Wales costs £164,200 but that value reflects an important aspect.

4 out of 5 flats for sale in England are leasehold and this keeps values in check. If you buy a leasehold flat, you’ll pay an average of £200 a year in ground rent and £1,900 in annual service charges. Conveyancing fees are also greater, plus short leases cost money to extend.

These charges, together with a different ownership structure, are also why leasehold flats take longer to sell. But flats shouldn’t be overlooked. They’re exceptional value right now, and active reforms will make it easier and cheaper to renew a lease.

Richard Donnell, Executive Director at Zoopla, comments:

“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. 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.”

Finding the right flat for you: 4 considerations

As well as offering the best value for 30 years, flats come with unique advantages. The views from upper floors can be stunning, you can get great communal facilities and someone else looks after major maintenance.

But before you fall in love with a flat, there are 4 key considerations:

Lease length

Check how long is left on the lease and get a legal quote to renew it before you exchange, especially if there’s less than 85 years left.

A specialist can advise whether it’s best to wait for The Leasehold and Freehold Reform Act 2024 to take effect before you buy a flat. These reforms are ready to be rolled out.

You might even benefit from waiting for The Commonhold and Leasehold Reform Bill to become an Act. These proposed reforms would give leaseholders even more rights but there’s a lengthy process ahead to make these law.

Service charges

The upkeep of blocks and communal facilities is paid for by flat owners through service charges.

Ask to see 3 years of accounts to establish what you might pay. It’s also wise to check a block yourself to see if it’s well maintained.

Ground rent

Two-thirds of leasehold listings have an annual, fixed ground rent below £250. A minority have an escalating or doubling clause that allows ground rents to rise infinitely. Reforms would ban this. Find out what ground rent is due before making an offer.

Building safety

If a flat is in a building 11 metres or taller, ensure there is an EWS1 certificate. Also ask if the building manager has budgeted for Building Safety Act costs.

Key takeaways

• The typical UK house now costs approximately 1.7 times as much as a flat, compared with 1.3 times a decade ago.
• Average flat values have risen much more slowly than house prices since 2016, creating a national price difference of approximately £134,000.
• Buyers can find some of the largest savings in the Midlands and northern England, where houses may cost more than twice as much as flats.
• Flats remain particularly important for buyers in London and the South East, where purchasing a house is unaffordable for many households.
• Before purchasing a leasehold flat, buyers should review the remaining lease term, service-charge history, ground-rent conditions and building-safety documentation.
• Current and proposed leasehold reforms may improve protections for flat owners, but buyers should still obtain independent legal advice.