Houses dominate rental demand as flat values
Houses now account for 65% of high-demand rental properties in England, while flats are the only property type seeing falling sale prices, according to new
Houses are now the most sought-after rental property type across England, according to analysis from property management firm Rushbrook. Flats, meanwhile, are the only property type in Britain to see average sale prices fall over the past year.
Rushbrook's study of 15,583 properties found that houses collectively account for 65% of rental homes attracting high tenant interest. Flats remain the single most common type, but represent just 34% of high-demand listings. The demand for houses is spread across various styles.
| Property Type | Share of High-Demand Rentals |
|---|---|
| Detached Houses | 27% |
| Semi-Detached Houses | 22% |
| Terraced Houses | 15% |
| Flats | 34% |
Regional rental divides
The preference for houses over flats varies dramatically by region. In London, flats dominate, making up 71% of high-demand rental properties. The picture is reversed elsewhere. Almost two-thirds (64%) of sought-after rentals in the South East are houses. This rises to 77% in the East of England and reaches 97% in the East Midlands.
Flat values in decline
Separate analysis of Land Registry data to June by SAM Conveyancing shows a clear downturn for flats in the sales market. Flats and maisonettes were the only property type in Britain to experience negative annual growth, with values falling 2.27% to an average of £216,246.
Andrew Boast, CEO of SAM Conveyancing, links the decline directly to leasehold issues. He says the drop in value matches a rise in problems for owners and buyers. "We are seeing transactions stall on a daily basis because of delayed leasehold reforms and the sheer complexity of Building Safety Act compliance," Boast said. He explained that buyers are now actively weighing legal risks and future liabilities, not just the asking price.
Auction market shift
The challenges in the leasehold sector are also reflected in the auction room. Data from the Essential Information Group (EIG) shows a sharp increase in the proportion of flats sold at auction. Flats accounted for 27% of residential auction sales in the second quarter of 2024. This is up from about one-fifth for much of the period from 2021. The actual number of flats sold at auction was 18% higher than in the same quarter last year.
Industry observers attribute this rise to landlords reviewing their portfolios and the specific difficulties faced by some leasehold properties. Roma Sharma, Managing Director of Rushbrook, points to broader social trends driving the rental demand shift toward houses. She says people are renting for longer and across more life stages, with affordability barriers preventing a move onto the property ladder. This is creating higher demand for alternative property types like larger houses.
