Nearly four in ten London flats resold in the 12 months to August 2026 after being held for five to ten years changed hands for less than their previous recorded purchase price, according to new repeat-sales analysis from chartered surveyor e.surv.
London flats lead resale losses
London recorded the highest share of nominal-loss resales in Great Britain. Around one-third of flats resold after five to ten years in both the South East and East of England also sold below their previous price, while the proportion was close to one in five across the Midlands and northern England. Across Great Britain as a whole, the figure was just over one-quarter.
The longer-run e.surv House Price Index shows flats and houses beginning to diverge around 2017, as concerns over building safety, cladding and service charges increasingly shaped the decisions of buyers, sellers and lenders across much of the flat market.
Scotland points to a different picture. Fewer than one in ten Scottish flats held for five to ten years sold below their previous recorded price, and the gap between flats and houses is far narrower there than in London, the South East or East of England.
Price growth slows across Great Britain
Average house prices across Great Britain rose 1.5% in the year to September, taking the average to £328,900. Momentum has softened, however, with prices falling 0.2% over both the quarter and the month. Annual growth remains positive but has slowed steadily from 2.5% in May and now sits around the levels seen at the end of last year.
Scotland leads annual growth at 3.5%, with prices averaging £234,00 [figure to confirm]. London is the only region in decline, with prices in the capital down 2.3% year on year. Yorkshire and Wales follow Scotland closely, each up 3.4% over the year.
"The housing market enters the autumn moving slowly rather than decisively in either direction," said Rob Owens, head of research at e.surv. "Annual price growth remains positive, but shorter-term measures have softened, and activity continues to face pressure from higher borrowing costs.
"Flats remain one of the clearest areas of weakness. Our repeat-sales analysis shows that this is no longer simply a gap between property-type indices: for some owners, it is being crystallised when they sell. It is important to understand more about the factors behind that performance, including building safety, tenure and service charges, which should help buyers make better-informed decisions and give lenders a clearer view of the risks.
"Attention now turns to the Autumn Budget, where the government has already confirmed that the new Your First Home equity-loan scheme will feature, with remaining details still to be set out. The return of government-backed support for the new-build market could support both demand and housing delivery, but it arrives in a very different market from the early years of Help to Buy."
