Four in ten sold for less than they cost
Nearly four in ten London flats, held for between five and ten years, sold for less than they were bought for during the 12 months to August 2026, according to e.surv’s latest House Price Index – the highest proportion of flats sold at a nominal loss in Great Britain.
Meanwhile, in the South East and East of England around one-third of flats resold for less than their purchase price, compared to close to one in five across the Midlands and northern England. Across Great Britain as a whole, the share was just over a quarter.
In Scotland, however, less than one in ten flats held for the same period sold below their previous sales price.
e.surv’s historical House Price Index shows that from around 2017 concerns over building safety, cladding and service charges began to influence the decisions of buyers, sellers and lenders in many parts of the flat market.
According to e.surv’s index, average house prices across Great Britain rose by 1.5% in the year to September, taking the average price to £328,900 but fell 0.2% over both the quarter and the month. Annual growth has slowed from 2.5% in May and is now back around the levels seen at the end of last year.
Annual growth highest in Scotland
Price growth is highest in Scotland, at 3.5% annually hitting an average of £234,00, followed by Yorkshire and Wales, which have both seen a 3.4% annual increase. London remains the only region in decline, with prices down 2.3% year-on-year in the capital.
Rob Owens, head of research at e.surv, said: “The housing market enters the autumn moving slowly rather than decisively in either direction. 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.
