UK Flats & Apartments: The ONLY Property Type to Decline (-5.8%)
Flats: The Only Property Type to DECLINE (-5.8%)
With 1,961,105 flat sales (2015-2025) and an average price of £302,807 in 2025, apartments are the only property type to lose value over 5 years. While houses gained 13-18%, flats dropped from £321k (2020) to £303k (2025). Select areas still grew - E1W 2 (Wapping) delivered +69% returns.
UK Flat Market: 2015-2025 Analysis
Flats and apartments represent the most accessible entry point to property ownership in many UK cities. However, flats are the only property type to lose value over 5 years (-5.8%). Over the full 10-year period, growth was a modest +10.0% - dramatically underperforming houses (+29-40%). The market shows extreme regional variation - from £121k in Chorley/Scarborough to £1.5M+ in Chelsea. This analysis covers 1,961,105 flat transactions from 2015-2025.
Why Did Flats Decline While Houses Rose?
Key Factors
- • Post-pandemic shift to more space/gardens
- • Cladding crisis and EWS1 issues
- • Higher service charges and ground rents
- • Remote work reducing city-centre demand
The Numbers
11-Year Market Trends (2015-2025)
| Year | Transactions | Avg Price | YoY Change |
|---|---|---|---|
| 2015 | 205,356 | £275,291 | - |
| 2016 | 213,158 | £287,174 | +4.3% |
| 2017 | 195,698 | £300,573 | +4.7% |
| 2018 | 185,711 | £299,184 | -0.5% |
| 2019 | 174,143 | £300,645 | +0.5% |
| 2020 | 146,034 | £321,322 | +6.9% |
| 2021 | 216,221 | £315,325 | -1.9% |
| 2022 | 207,832 | £328,557 | +4.2% |
| 2023 | 160,504 | £337,248 | +2.6% |
| 2024 | 158,699 | £328,653 | -2.5% |
| 2025 | 97,749 | £302,807 | -7.9% |
Top 10 Growth Areas (2020-2025)
While national flat values declined, these select areas still delivered positive returns. Prime London and coastal locations bucked the trend:
| Rank | Area | Location | 5Y Growth | 2025 Avg | 2025 Sales |
|---|---|---|---|---|---|
| 1 | E1W 2 | London (Wapping) | +69.0% | £1,068,473 | 77 |
| 2 | EX8 2 | Exmouth | +62.7% | £290,544 | 34 |
| 3 | SW10 0 | London (Chelsea) | +61.2% | £1,524,639 | 41 |
| 4 | M3 7 | Salford | +57.4% | £297,314 | 213 |
| 5 | HA0 1 | Wembley | +56.9% | £516,447 | 112 |
| 6 | CT20 1 | Folkestone | +49.1% | £186,869 | 49 |
| 7 | NE30 2 | North Shields | +44.6% | £169,113 | 31 |
| 8 | E16 2 | London (Custom House) | +40.7% | £392,773 | 44 |
| 9 | GL50 2 | Cheltenham | +38.0% | £339,974 | 57 |
| 10 | W2 3 | London (Bayswater) | +37.4% | £1,359,370 | 30 |
Highest Volume Areas (2025)
Most Affordable Flats (2025)
Affordable flats (£120-160k) available in Chorley, Scarborough, Swindon, Leeds and Margate.
Investment Considerations
Pros
- • Lower entry price vs houses (£303k vs £497k detached)
- • Strong rental demand in cities
- • New builds often include amenities
- • Less maintenance responsibility
Cons - CRITICAL
- • NEGATIVE capital growth (-5.8% over 5 years)
- • Service charges and ground rent eating returns
- • Leasehold complications and reform uncertainty
- • Cladding and EWS1 issues affecting many buildings
Key Takeaways
- 1ONLY DECLINING PROPERTY TYPE: Flats lost -5.8% over 5 years while houses gained 13-18%.
- 2Location critical: E1W 2 (Wapping) grew +69%, Exmouth +63%, while most areas declined. Choose wisely.
- 3London dominates volume: E14 (Canary Wharf) leads with 731 sales, followed by SW11 (Battersea) with 632.
- 4Entry points: £121k flats in Chorley/Scarborough, £149-159k in Swindon/Leeds/Margate.
Data source: HM Land Registry Price Paid Data. Analysis covers 1,961,105 flat/maisonette (Type F) transactions 2015-2025. Growth calculations based on areas with minimum 30 transactions in both 2020 and 2025.
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