Should you ever buy a flat?

The question isn’t whether you should buy a flat, it’s whether you’re buying the right flat. Cladding concerns, rising service charges and lender restrictions have made some flats harder to finance and sell, but that doesn’t mean they should be ruled out completely. In many city centres, flats remain the most affordable route onto the property ladder and continue to attract strong rental demand. Buyers need to look beyond the purchase price and understand the ongoing costs, lease terms and future marketability. The right flat can still be an excellent purchase. The wrong one can become an expensive lesson..

No property should ever be 100% ruled out, but it is no surprise that leasehold flats have taken a battering over the last few years, given the rising costs of maintenance and how many blocks have needed cladding rectification. Whilst those larger blocks have become less popular, buyers of converted houses, with a share of the freehold and much more control over running costs, are certainly more attractive, especially in London. We spent decades worrying more about lease lengths, when the service charge bubble was actually threatening to burst. Flats may be troubled for residential use, but for landlords, at the right price, they offer a significant return from eager tenants who want the location and convenience, without the hassles Perhaps right properties, wrong markets.

Most people do not buy a flat because they prefer it to a house. They buy one because it is more affordable. For first-time buyers especially, the choice is often a flat or nothing at all.

Purpose-built flats are usually the safer option. They were designed as flats from day one, tend to have better soundproofing and are often professionally managed. The downside is they can feel a bit soulless and service charges can be higher.

Converted houses offer more character, but they can come with surprises. I have seen plenty where owners keep costs low by avoiding a sinking fund, only to face huge bills when the roof or structure needs repairing. Low service charges can sometimes be a warning sign rather than a benefit.

The best way to protect a flat's value is good maintenance. Buyers look closely at service charges, reserve funds and whether repairs are being kept on top of. A well-run block will almost always be worth more than a neglected one, regardless of if its type.

Yes, but go in clear-eyed. Our Land Registry analysis shows flats have lost their old advantage: the typical flat sold in 2000 had been owned 2.8 years; by 2025 that was 9.1 years. The quick first step has become a near-decade commitment, and a quarter of flats sold last year had been held over 16 years. Flats also fell in 22 of 24 towns we studied while houses held or rose.

The cons are almost always leasehold: a short lease, and ground rent and service charges that climb. The pros are real too: flats are cheaper to get into and often better located.

Safer bets are share-of-freehold flats and small conversions, where owners control the costs. Be wary of big blocks with high service charges or building-safety questions.

To protect value: extend the lease well before it nears 80 years, keep the service charge sensible, and buy where the lease is long and the freeholder is reasonable.

Flats can still be good buys- you just need to do the research and understand them. Flats that have a share of the freehold where it is run by the community are usually good buys as costs will be kept down for maintenance and usually sourced locally rather than through costly contracts. Those with long leases and peppercorn rent and no service charges are good buys as long as the property is well maintained. A good broker will guide buyers but sadly there is a lot of flats stuck due to the onerous charges and legislation following Grenfell where owners just can’t make them appealing enough.

Flats used to be the go-to choice for first-time buyers and downsizers because they were often more affordable than houses and easier to manage. They still have an important place in the market, particularly in cities and popular commuter areas. However, buyers are becoming much more cautious because of rising service charges, management fees and concerns about leasehold costs.

People do not want to be at the mercy of annual charge increases or face huge bills to extend a lease in the future. Share of freehold flats are often more attractive because owners have greater control over the building and its costs. Well-run conversions and smaller blocks can also appeal, but buyers are paying far closer attention to ongoing costs than they did in the past, as these can have a significant impact on a flat’s value and saleability. Buyers are much more cautious than they were a decade ago and are paying far closer attention to the ongoing costs that come with owning a flat.

Flats are not bad purchases, but they need much more due diligence than houses. The upside is obvious: they are often more affordable, can be in better locations, and may suit first-time buyers, downsizers and investors. The downside is that you are not just buying the flat; you are buying into a building, a lease, service charges, ground rent, management quality and future repair costs.

The safest flats are usually those with long leases, sensible service charges, clean management accounts, no cladding or building safety issues, and no aggressive ground rent clauses. Share of freehold can be attractive, but only if the building is well run.

House conversions are not automatically safer. They can be brilliant, but they can also come with poor soundproofing, shared maintenance disputes and unclear responsibilities.

To protect value, keep the lease long, challenge unreasonable charges, maintain the property well, and avoid buying into buildings with messy legal or management problems.

Flats in London often represent the BTL and second home market, both of which have taken a hit from SDLT increases and the Renters Rights Reform.

The Building Safety Act has made it and expensive and lengthy process to purchase, which adds to the lack of attraction.

Leasehold reform proposals, together with a drop in demand and prices, could make now the perfect time to
Invest in flats over the longer term