Flat Prices Slide Again as Buyers Prefer Houses and Landlords Sell Up

Flat Prices Slide Again as Buyers Prefer Houses and Landlords Sell Up

New figures from Nationwide show that prices of flats in the UK have fallen over the past year, continuing a trend of weaker performance compared with other types of homes. According to the latest data, the average value of a flat dropped by around 0.9% year-on-year — despite modest increases in house prices. 

In contrast, house prices have been rising across most property types:

• Semi-detached homes increased by about 2.4%,

• Detached houses by around 2.2%,

• Terraced houses by roughly 1.8% over the same period. 

Nationwide’s chief economist, Robert Gardner, says the weaker performance of flats reflects longer-term changes in buyer preferences. After the pandemic, many buyers have favoured properties with more space — a factor that has partially persisted and dampened demand for flat living. Higher maintenance costs, service charges and ground rents have also made flats less attractive to some buyers, contributing to slower price growth in this segment. 

The decline in flat values also ties into broader market conditions. Nationwide’s data shows that overall UK house prices dipped slightly at the end of 2025, with a 0.4% fall in December compared with November, and slower annual growth than earlier in the year. Despite this softer finish, the housing market has shown resilience, supported by steady mortgage approvals even as consumer sentiment remains cautious. 

In summary, while UK property prices overall have continued to grow modestly, flats remain the weakest performing property type, largely due to shifts in buyer demand and cost considerations that favour houses over flats.