The figures reveal the damaging effect that the leasehold system has had on flats sales in the UK, Zoopla added. Four in five flats listed for sale in England were leasehold in April, according to Land Registry data.
The typical leaseholder paid £200 a year in ground rent and £1,900 a year in service charges between 2023 and 2025 – a combined £2,100 a year, Zoopla found.
Thanks to these costs, flats also took longer to sell. Flats in Scotland sold after an average of 16 days between March and May, soaring to 46-47 days in England.
Mr Donnell said: “Buying a leasehold flat is more complex than buying a house – lease length, service charges and ground rent terms all matter and vary significantly from one property to the next.
“A well-managed building with a long lease and stable service charges is a very different proposition from a property with less clarity on service charges and a short lease.
“Leasehold sales fell to their lowest level since 2008 last year.”
However government legislation, such as higher stamp duty and the introduction of the Renters’ Rights Act, had also diminished the demand for flats, experts said.
Lucian Cook, of estate agency Savills, said: “Flats are typically bought by first-time buyers and buy-to-let investors. Clearly, buy-to-let investors are under significant pressure, so that’s massively reduced demand as well as meaning more flats have been brought to the market.”
