Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Freehold House Prices Up, Leasehold Flats Down
The value of freehold houses in the UK continues to rise, while leasehold flats and maisonettes are experiencing falling values, according to analysis by SAM Conveyancing.
Analysis of the latest Land Registry data, covering the year to June 2026, shows that flats and maisonettes are the only major property type in the UK to record negative annual growth. Their average value fell by 2.27% year-on-year to £216,246. Over a five-year period, flat values have also declined by 1.56%.
In contrast, all three main house types recorded annual price increases. Semi-detached properties led the market, rising 3.16% over the year to an average of £285,618. Terraced houses increased by 2.76% to £240,147, while detached homes rose 1.98% to £463,547.
SAM Conveyancing chief executive Andrew Boast said the fall in flat values reflected growing legal, legislative and financial pressures facing leaseholders. He noted that transactions are increasingly delayed by leasehold issues, including Building Safety Act compliance, ground rent clauses, lease terms, and mortgagee protection clauses. Boast also highlighted tighter lending criteria as a major factor affecting the flat market, adding to the complexity of conveyancing transactions.
According to the analysis, nearly nine in ten leasehold flats have been on the market for more than six months. Sellers in this category face pressure to price competitively to secure a transaction. For cash buyers and investors not subject to mortgage stress tests, the weakness in the flat market could create opportunities to negotiate significant discounts on urban apartments.
Source: Mortgage Strategy