A widening gap has emerged between house and flat prices, with flats and maisonettes recording annual falls while houses continue to gain value.
Analysis of Land Registry data by SAM Conveyancing shows the average flat or maisonette fell 2.27% year-on-year to £216,246 in June 2026.
Over five years, values have fallen by 1.56%, according to the analysis.
By contrast, all three major house types recorded annual price growth.
Semi-detached homes performed strongest, rising 3.16% to an average £285,618. Terraced properties increased 2.76% to £240,147, while detached homes gained 1.98% to £463,547.
SAM Conveyancing argues that leasehold issues are contributing to the weaker performance of flats. It points to service charges, ground rents, Building Safety Act requirements and uncertainty surrounding leasehold reform.
Andrew Boast, CEO of SAM Conveyancing, said: “The fall in value across the leasehold sector is mirrored exactly by the rise in headaches for owners and prospective buyers.
“We are seeing transactions stall on a daily basis because of delayed leasehold reforms and the sheer complexity of Building Safety Act compliance, ground rent clauses, lease terms and mortgagee protection clauses. Buyers are no longer just looking at the asking price, they are actively factoring in the legal risks and future liabilities.”
Boast also argued that tighter lending requirements are creating additional difficulties for some flat transactions.
He added: “Lenders are heavily scrutinising ground rent terms and insisting on strict mortgagee protection clauses.
“When you combine this with aggressive freeholder controls, escalating service charges, and unresolved cladding liabilities, many flats are becoming borderline unmortgageable without significant legal remediation. It is no surprise that buyers are pivoting toward the security and autonomy of a freehold house.”
The analysis also claims almost nine in 10 leasehold flats remain on the market for more than six months.
However, the figures do not establish that leasehold issues alone caused the divergence in prices. Factors such as location, affordability and changing buyer preferences can also affect differences between property types.
