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

Zoopla: Four Out of Five Flats Fail to Sell Within Six Months

Four out of five flatowners are struggling to sell their properties within six months, according to data highlighted by Zoopla. The findings were discussed by Richard Donnell, Executive Director of Zoopla, on BBC Radio 4’s Today Programme.

Donnell stated that selling a flat is currently challenging, with flats experiencing weaker demand and greater uncertainty compared to other property types. He noted that, typically, around half of properties do not find a buyer, but flats are facing additional difficulties that are affecting their values.

Several factors have contributed to the slow sales of flats in recent years. These include high service charge levels, ground rents, government reforms, the cladding crisis, and ongoing building safety concerns. As a result, lenders are scrutinising loans on flats more closely.

Donnell also pointed out that leasehold arrangements add complexity for buyers. He explained that buyers of freehold houses have more control over costs, whereas leasehold flats come with additional considerations and expenses over the period of ownership. This has led to increased caution among buyers when considering leasehold flats.

Zoopla revealed that the price gap between flats and houses in Britain is now at its widest in three decades. Donnell noted that this issue is less pronounced in Scotland, where share of freehold is more common and some of the challenges seen in England are less significant.

These trends are particularly relevant for UK letting agents and inventory clerks, as they may impact demand for flats, the speed of transactions, and the types of properties tenants and buyers are seeking.