England Leasehold Flat Market Stagnates as Sales Plummet

The market for leasehold flats in England has entered a significant downturn, with a vast majority of properties failing to sell within six months. Data from Zoopla reveals that 80.5% of leasehold flats listed in 2025 remained unsold, with the stagnation most acute in London, where the rate reached 87%.

Industry analysis attributes the slump to uncertainty regarding the leasehold system and a pricing gap between investor sellers and first-time buyers. This is compounded by restrictive mortgage lending rules from banks that hinder aspiring homeowners. Individual sellers have described the market as moribund, citing frequent down-valuations by surveyors and high management costs.

To address these issues, the Government of the United Kingdom passed the Leasehold and Freehold Reform Act 2024 to simplify lease extensions. However, a total ban on new leasehold properties is unlikely to be implemented until after the next election. Meanwhile, broader real estate research from Rightmove suggests that the few successful home sales this year have largely occurred without price reductions.