Reports that England’s flat market has ground to a halt will worry many homeowners. The latest figures suggest that the majority of leasehold flats are not securing a buyer within six months, even after sellers reduce their asking prices. One vendor in a Devon seaside town, despite owning a freehold flat in excellent condition with sea views, has found no takers after extensive marketing. The story echoes a wider sentiment that flats, regardless of tenure, are struggling to attract interest.
This slowdown comes as mortgage rates remain high and buyer confidence is fragile. Flats have traditionally been the entry point for first-time buyers and a popular choice for downsisers, but both groups appear to be holding back. The controversy around leasehold charges and cladding issues has further dampened demand, yet even freehold flats are not immune. The question is whether something more fundamental has shifted in what buyers want from a home.
Where are the youngest residents?
| District | Post town | Region | Under 18 |
|---|---|---|---|
| S98 | Sheffield | Yorkshire and The Humber | 32.2% |
| B9 | Birmingham | West Midlands | 30.6% |
| B25 | Birmingham | West Midlands | 29.3% |
| B8 | Birmingham | West Midlands | 29.3% |
| BD3 | Bradford | Yorkshire and The Humber | 29.1% |
| BD5 | Bradford | Yorkshire and The Humber | 28.8% |
| B19 | Birmingham | West Midlands | 28.4% |
| B10 | Birmingham | West Midlands | 28.3% |
| M7 | Salford | North West | 28.3% |
| S4 | Sheffield | Yorkshire and The Humber | 28.0% |
The table above highlights a striking statistic from the most recent census. The Sheffield postcode district S98 has the highest proportion of residents aged under 18 in the country, at 32.2%. Nearly one in three people living there is a child or teenager. This is not a typical demographic for an area dominated by flats; it points to family housing, with space for growing households.
What S98 tells us about the flat market
When we overlay this demographic insight onto the current sales data, a possible explanation for the flat market’s struggles emerges. In a district like S98, where the under-18 share is so high, the housing stock is likely skewed towards houses with multiple bedrooms, gardens, and access to schools. Flats, particularly one- and two-bedroom properties, simply do not meet the needs of these families. If this pattern is repeated across other areas with strong family populations, then the pool of potential flat buyers shrinks considerably.
The Guardian’s report notes that even well-presented freehold flats are languishing. Our data suggests that where the local population is dominated by young families, the demand for flats may be structurally lower. Buyers who might once have considered a flat as a first step are now perhaps waiting longer and aiming directly for a house, especially if they have or plan to have children. The S98 figure of 32.2% under-18s is a powerful reminder that housing markets are local and shaped by who lives there.
Of course, S98 is just one postcode district, but it serves as a useful case study. If a significant portion of England’s housing demand comes from families with children, then the glut of unsold flats becomes easier to understand. Developers and sellers may need to rethink how they position flats, perhaps by emphasising proximity to amenities or by converting larger units to suit family life. Without that shift, the market could remain frozen for some time.
The data behind this
The demographic percentages come from the Office for National Statistics census, accessed via the Postcodes UK database. Property market trends are drawn from HM Land Registry price paid data and transaction volumes. Postcodes UK combines these sources to offer a detailed view of housing markets at the postcode level. For more on S98 and other districts, explore our S98 area guide.
In response to reporting by Guardian Property. Analysis and figures by Postcodes UK.