Selling a flat in 2026 is not the same as selling one five years ago. Data from across the London market shows that close to a quarter of flats have sold for less than their original purchase price in recent periods. Nationally, flats are softening more than houses. If you own a flat and are thinking of selling, it pays to understand why this is happening and what you can do about it before you put your property on the market.
Why Flats Are Under Pressure Right Now
Several forces are converging at once. Building safety has been the biggest single disruptor. Following the Grenfell Tower fire, lenders and buyers have become far more cautious about high-rise and medium-rise blocks. Many buildings still have unresolved cladding issues, and some blocks remain effectively unmortgageable without an EWS1 certificate (an External Wall System assessment carried out by a qualified fire engineer). Without one, your pool of potential buyers shrinks to cash purchasers only.
Service charges have risen sharply in many blocks, driven by increased insurance premiums linked to building safety risk and the cost of remediation works. Ground rent uncertainty has added another layer. Leasehold reform has been in progress for years, and buyers are wary of ground rents that double over time or that cause mortgage problems.
First-time buyers are the natural audience for most flats, particularly one and two-bedroom units. They are also the cohort most exposed to mortgage rate movements. When rates are elevated, their borrowing power falls, and the price they can offer for your flat falls with it. Houses, which tend to attract second-steppers and families with more equity, are somewhat insulated from this.
Sort Your Paperwork Before You List
If your block is five storeys or more, or has any form of cladding, find out whether an EWS1 certificate exists and whether it is rated A1, A2, or B1 (lender-acceptable ratings) or B2 (which will block most mortgage lending). Your managing agent or residents management company should be able to tell you. If the certificate does not exist or is out of date, speak to your freeholder or management company about commissioning one before you market the property. Going to market without this information is likely to cost you time, buyer goodwill, and money.
Lease length matters too. Most mortgage lenders want at least 70 to 85 years remaining on a lease at the point the mortgage completes. If your lease is below 90 years, buyers will start factoring in the cost of a lease extension, and below 80 years the calculation becomes more expensive due to marriage value (the uplift in value that the freeholder can claim a share of). Get a solicitor to advise you on your extension options and cost estimates before you set your asking price.
Present the Financial Information Proactively
Buyers and their solicitors will request service charge accounts, ground rent details, and information about the sinking fund (the reserve held by the management company for future major works). Delays in providing this information are one of the most common reasons flat sales fall through or slow down.
Gather the last three years of service charge accounts, a copy of the lease, details of any planned major works, and the current sinking fund balance. Have these ready from day one. If service charges are high, be prepared to explain what they cover. A well-maintained block with a healthy sinking fund is a positive story, not a liability.
The Leasehold and Freehold Reform Act
The Leasehold and Freehold Reform Act 2024 introduced several changes that are being phased in. Broadly, the Act aims to make lease extensions cheaper and easier, to cap ground rents in certain circumstances, and to give leaseholders more power over their buildings. For buyers, this is broadly positive news for the long term, and you can mention it when marketing your flat. The detail of implementation is still developing, so ask our team or speak to your solicitor for the most current position.
Presentation and Pricing
Flats benefit enormously from good photography. Declutter completely before the photographer visits. Storage, natural light, and a sense of usable space are what buyers are looking for. If you have a balcony or a view, make these the lead images. Professional wide-angle photography is standard now and worth the cost.
On pricing, be honest with yourself about comparables. Look at what flats in your block and on your street have actually sold for in the past 12 months, not what they were asking. If similar houses on the same street are selling for a premium over flats, that gap reflects real demand. An overpriced flat in this market will sit, and a stale listing attracts low offers.
Choosing the Right Agent
Not all agents have the same experience with leasehold property. Ask any agent you are considering how many flats they have sold in the past year, whether they understand EWS1 and lease extension processes, and how they plan to qualify buyers to make sure they have access to mortgage lending suitable for your block. An agent who sells mainly houses may not have the contacts or knowledge to handle leasehold complications efficiently.
How Cooke and Co Can Help
At Cooke and Co, we have direct experience selling leasehold flats across the local market. We understand the additional due diligence involved, how to present service charge information clearly to buyers, and how to manage the process when building safety queries arise. If you are thinking of selling your flat, come and speak to us before you list. We will give you a straight assessment of where you stand and what, if anything, is worth sorting out first.
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