Flat and maisonette prices are falling while houses continue to gain value across the UK, highlighting a widening divide between different parts of the housing market.
An analysis of Land Registry data by conveyancing firm SAM Conveyancing found that the average price of a flat or maisonette fell 2.27% year-on-year to £216,246 in June 2026. The analysis also found that values were 1.56% lower than five years earlier.
The trend is also visible in the official UK House Price Index. In England, flat and maisonette prices fell 2.3% in the year to June, while semi-detached, terraced and detached properties all recorded annual growth.
For buyers and homeowners, the figures point to a housing market where property type is becoming increasingly important alongside location and overall market conditions.
M10News tracks developments affecting the UK housing market, including property prices, mortgage costs, rental rules and housing policy.
Houses continue to outperform flats
The contrast between flats and houses was particularly pronounced in the SAM Conveyancing analysis.
Semi-detached properties recorded the strongest annual growth, with average values rising 3.16% to £285,618. Terraced homes increased 2.76% to £240,147, while detached properties rose 1.98% to £463,547.
The official UK HPI data points in the same direction, although its figures are based on the full UK HPI methodology rather than the SAM analysis.
Across the UK, the official index put the average price of a flat or maisonette at £193,711 in June 2026, down 1.6% from a year earlier. Average prices for detached, semi-detached and terraced properties were all higher than a year earlier.
In England, where the official HPI recorded a 2.3% annual fall for flats and maisonettes, the average price was £219,154. Semi-detached homes averaged £290,904, while terraced homes averaged £246,170.
The different average-price figures reflect the different datasets and geographic coverage, but both sources show the same broad pattern: flats are performing considerably more weakly than houses.
Leasehold issues add pressure for some buyers
SAM Conveyancing argues that problems associated with leasehold ownership are contributing to the weaker performance of flats.
Its analysis points to issues including service charges, ground rents, lease terms, building-safety requirements and uncertainty around future leasehold reforms. The firm also says some transactions are being delayed while buyers and lenders assess the legal and financial obligations attached to individual properties.
These concerns are particularly relevant because most flats in England and Wales have traditionally been sold on a leasehold basis.
For a prospective buyer, the advertised purchase price is only one part of the calculation. Service charges, the remaining length of the lease, ground-rent provisions and potential building-safety liabilities can all affect the cost of owning a property.
Lenders can also take the terms of a lease into account when deciding whether a property is suitable security for a mortgage.
That does not mean leasehold problems explain every fall in flat prices. Property values are also affected by mortgage rates, local supply and demand, affordability, employment conditions and changing buyer preferences.
Leasehold reform remains an important factor
The market is also changing as the UK Government pursues reforms to the leasehold system.
The Leasehold and Freehold Reform Act 2024 remains part of the legal framework, while further government proposals have focused on issues including ground rents and expanding commonhold as an alternative to leasehold ownership.
That creates uncertainty for some buyers and owners because the eventual effect of reforms can depend on when individual measures come into force and how they are implemented.
For buyers considering a flat, this makes due diligence particularly important. Two properties with similar asking prices can carry very different long-term costs depending on their leases, service charges and building arrangements.
What the figures mean for the housing market
The widening gap between flats and houses does not necessarily mean that all flats are becoming poor investments or that house prices will continue rising at the same rate.
The official UK HPI shows that the overall market remains positive, with UK property prices up 2.0% annually in June 2026. However, price growth has slowed from 3.0% in May, while London recorded an annual fall of 2.5%.
The figures therefore suggest a more selective market rather than a uniform rise or fall in property values.
For flat owners, however, sustained weakness could have practical consequences. A lower property value can reduce available equity and make it harder for some owners to move, refinance or sell at the price they had expected.
For buyers, falling flat prices could provide opportunities, but the headline discount needs to be considered alongside the full cost and legal status of the property.
The next UK House Price Index release, covering July 2026, is due on 16 September and should provide another indication of whether the gap between flats and houses is continuing to widen.
For more updates, analysis and reporting, read the latest UK housing news from M10News.
