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March 30, 2026
3 minute read
KEY INFORMATION
Property experts have blamed the dip in prices on high leasehold costs, with average flat prices in England having fallen by 2.2%.
Average service charges have soared to £2,800 a year in London, according to estate agency Hamptons’ figures reported in The Telegraph, which can make flats difficult to sell.
This issue was addressed at the Select Committee hearing on the Commonhold and Leasehold Reform Bill in March 2026. Campaign group Free Leaseholders’ Harry Scoffin warned that more than a third of flats in the UK may face significant selling difficulties due to high service charges. He said: “There is a crisis in the flats market at the moment. People cannot sell. They cannot move on.”
The warning comes as some mortgage lenders have tightened their criteria to exclude flats where service charges routinely exceed 1% of the property’s value. If you’re buying a leasehold flat, it’s a good idea to speak to a mortgage broker.
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Also, with landlords selling up smaller properties ahead of the implementation of the Renters’ Rights Act, and continued issues around cladding and high service charges in some blocks, flats on the whole are generating less interest than houses, said Jason Tebb, of property portal Onthemarket.
Across the UK, the average property price has risen by 1.3% to £268,000. However, London house prices have fallen for the sixth consecutive month.
Leaseholders are also waiting to hear when leasehold reform will come fully into effect:
Read more in our guide Leasehold Reform Latest News.
If you’re selling a leasehold flat, Paula Higgins, CEO of the HomeOwners Alliance, gives her expert advice on what to do now to increase the chance of your sale going smoothly. She says:
“When you’re selling a leasehold flat, you can improve your chances of a smooth sale by giving your buyers as much certainty as possible by providing information up front.”
“For example, if your lease needs extending, even if you don’t want to undertake the extension yourself, you can get a quote for the estimated costs and pass this onto the buyer so they’re fully informed.”
Get free no obligation advice on your lease extension
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