Editor's note: This brief was summarised by The Property AI Newsroom from a report by Guardian Property. Read the original article for full details.

Flats in England Struggle to Sell Despite Price Reductions

Many flats in England are not finding buyers within six months, even after sellers have reduced asking prices. Most flats listed for sale in England are leasehold, and issues with this form of ownership are being cited as a factor in slow sales.

Guardian Property reports that some owners have struggled for months or even years to sell their flats. One owner in Devon, who spent £15,000-£20,000 on renovations and listed her freehold flat for £280,000 (below her purchase price of £300,000), received only four viewings in nine months. She stated that if there are no further viewings by the end of the summer, she may take the property off the market and try again next year.

Another owner in London has been trying to sell her leasehold flat for two and a half years. After three failed sales, including one where buyers requested a £10,000 reduction, she is now attempting to sell to a cash buyer. The most recent sale attempt was for £145,000, compared to her original purchase price of £200,000. She has indicated that if this attempt is unsuccessful, she may consider renting out the property.

According to Zoopla data cited in the report, the average price of a house in the UK has risen by 43% since 2016, while flats have increased by 10% over the same period. Zoopla stated that uncertainty around leasehold in England is affecting the pricing and sale times of flats compared to houses.

The report notes that many respondents, including both owner-occupiers and small landlords, have reduced prices multiple times or experienced buyers pulling out, but have still been unable to sell their flats. Leasehold issues and related controversies are highlighted as ongoing concerns in the market.