Propertymark’s September 2026 research found that more than 78% of the agents it surveyed had withdrawn at least one leasehold property from sale because it was effectively unsellable. If your flat has rising service charges, building safety questions or an awkward lease, here is what is happening behind the scenes and what you can do about it. It is a UK-wide problem, and it is felt most sharply in London, where flats make up so much of the market inside the M25 and the surrounding counties.
What the Propertymark research found
The research, titled Leasehold: Still a Life Sentence?, was published on 9 September 2026 and draws on more than 1,200 leaseholders and 200 Propertymark members. The headline findings are uncomfortable for anyone trying to sell a flat:
- More than 78% of agents had withdrawn at least one leasehold property because it was effectively unsellable, and fewer than 1% said leasehold had become easier to sell over the past two years.
- 74% of agents named onerous service charges as a major barrier to selling leasehold flats.
- 86% of leaseholders had seen their service charges rise over two years, and 89% found it hard to challenge unfair charges. Some annual bills had climbed from around £1,000 to £2,000 to £3,000 to £4,000.
- 93% of leaseholders said they would not buy a leasehold property again.
The losses are showing up in sale prices
Separate repeat-sales analysis from e.surv, reported by The Negotiator on 8 October 2026, found that almost four in ten London flats resold at a loss in the 12 months to August 2026, the highest share in Britain. In the South East and East of England, around a third of flats resold after five to ten years changed hands for less than the previous purchase price, against just over a quarter across Britain as a whole.
The same research shows flat and house prices beginning to pull apart around 2017, as leasehold terms, building safety, cladding and service charges increasingly shaped what buyers, sellers and lenders were prepared to do.
Why agents walk away instead of solving it
Here is the uncomfortable truth, and it is our view rather than a research finding. Many agents are paid only when a sale completes. A flat with a rising service charge, an unclear safety position and a lease that needs explaining takes months of effort, and a buyer’s lender will probe every one of those issues. Quietly withdrawing the listing costs the agent nothing. It can cost you a great deal, because the service charge, the mortgage and the worry all keep running while your flat sits unsold.
Paperwork is part of the problem. Propertymark found that 40% of agents say leasehold information can take more than 15 days to arrive, sometimes several months, and only 17% typically receive it within five days. Every week of delay is a week in which a buyer’s mortgage offer can expire or their enthusiasm can fade.
Building safety: where the rules stand
Under the Building Safety Act 2022, qualifying leaseholders are protected from paying for cladding remediation, and contributions to other safety defects are capped at £10,000, or £15,000 in Greater London. That protection is real, but it does not make the problem disappear for a seller. Lenders still want answers about the building, and Propertymark estimates that remediating affected flats in England could take between 17 and 33 years. A buyer who needs a mortgage may simply not wait that long.
Your options if your flat will not sell
1. Wait and keep marketing
This can work if your building is well run and your lease is long. Be realistic about the cost, though: each month of service charge, mortgage interest and insurance comes out of your pocket, and a price cut after months on the market usually means selling for less than you could have achieved at the start.
2. Fix what you can first
Ask your managing agent for the service charge history, any planned major works and the building safety documents now, not after you find a buyer. Having a complete information pack can shorten the process considerably.
3. Sell to a cash buyer
A cash buyer does not need a lender’s approval, so questions about the building that stop mortgage buyers do not stop a cash sale. To be straightforward about it, a cash offer is normally below the best price an open-market sale could achieve. But for a flat that has already stalled, the best open-market price may never arrive. Compare the cash figure with what you would really net after agent fees, price cuts, further months of charges and the risk of a failed sale.
What to do this week
- Request the latest service charge accounts and any notice of major works.
- Check your remaining lease length and your ground rent terms.
- Ask for the building safety paperwork the managing agent holds.
- Add up what the flat costs you every month while it is unsold.
- Get a no-obligation cash offer so you have a real figure to compare.
Sources: Propertymark, Leasehold: Still a Life Sentence? (September 2026); e.surv repeat-sales analysis as reported by The Negotiator (8 October 2026); Building Safety Act 2022.
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