For many, buying a property in London isn’t a possibility, but for those who can afford a flat, it might not be worth it. In London, the average price of a home jumped 500% in the past 20 years, according to Land Registry data. But, from 2016, things began to change where flats are concerned, reports The Telegraph.
According to Zoopla, the prices of flats in the capital have not risen in nearly a decade. Inflation means prices have actually fallen, meaning those who invested in a flat have technically made a loss.
However, houses in the capital have not had the same problem. The average London house has seen its value jump from £562,000 to £705,200.
However, costs associated with owning and maintaining a flat have risen. Owner-occupiers’ housing costs rose 7.2% in the year to March 2025.
While it is already a hard enough challenge to save a sizeable deposit in London, if you do manage to do this, then you’ll be met with even more costs when you get the keys.
Around two-thirds of London’s flats are leasehold properties – these types of properties can include soaring service charges, rising ground rents and sudden costs.
In the capital, the average annual service charge can be up to £2633, reports The Telegraph.
Buying a leasehold flat can also be difficult, as complications can arise when you come to sell it.
The Government has promised a leasehold reform, but this has not yet happened, and for those for whom this is an immediate issue, it could be a while until a feasible solution is created.
But homeownership does have its benefits – rents continue to rise in the capita,l with London recorded as the second-highest rent inflation in the UK.
With many renters unable to pay any more rent as costs rise, many landlords have begun to sell their properties in the city in a mass exodus.