New data shows that flats have fallen in value by an average 0.9% over the past year.

The figure – from the Nationwide – contrasts with semi-detached houses which have risen by an average 2.4%. Detached properties are up 2.2% and terraced houses by 1.8%.

Robert Gardner, Nationwide’s chief economist, says:“Flats have seen noticeably weaker growth than other property types in recent years. For example, over the last 10 years, the price of a typical flat has increased by 18%, less than half of the rise in the price of terraced houses, which saw a 41% rise over the same period. 

“This is partly a reflection of regional trends where London, which has a much greater proportion of flats, has underperformed the wider UK over the past decade.”

“The underperformance of flats … may in part be a function of the change in demand seen during the pandemic. This resulted in a shift in preferences towards properties that offered more space and which has only partially unwound. In addition, the increased costs of maintenance, ground rents and service charges are also likely to have impacted buyer sentiment towards flats in recent years.”

Looking at the wider housing market, Nationwide says UK house prices fell in December compared to November, decelerating the rate of annual growth to the lowest in 18 months. 

Prices fell 0.4% month-on-month as 2025 came to an end, taking year-on-year growth slowed from 1.8% in November to 0.6% in December – the lowest since April 2024.

The building society says part of the reason for the fall is that a year ago – in December 2024 – house price growth was unusually high at 4.7%. 

Gardner concludes: “Despite the softer end to the year, the word that best describes the housing market in 2025 overall is ‘resilient’.

“Even though consumer sentiment was relatively subdued, with households reluctant to spend and mortgage rates around three times their post pandemic lows, mortgage approvals remained near pre-Covid levels.”