Buying a flat for 1.65m probably the first issue

Also never underestimate the need for ongoing maintenance in any property even if it isn’t a flat.

In 7 years my maintenance fee in London went from 1700 annually to just short of 10k. Nothing in the building got better, if anything far far worse. The management Mafia are all in cahoots with Freeholders. The Real estate industry is a farce in this country. Almost everything in this country is on the verge of complete collapse.

Like my father use to say… “Unless you own the land it’s built on, you own nothing!”

I bought a flat to live in London in 2007 and when I applied for a mortgage I was asked the age of the building. They told me that they would not accept a new build because of poor construction quality, small room sizes and an expected life span of 60 years, at most! Fortunately it was built in 1938 of solid brick and concrete so not a problem, and it’s proven to be a good place to live. New build housing stock is a disgrace and I know a number of people who are now trapped!

It's very simple IMHO - a leasehold property is a complicated way to rent. If it's not freehold you are a deluded tenant not a property owner.

I bought my flat in 2008 for £100,500 .  I sold it in 2024 after having it on and off the market for ten years .I sold it for £90,000 .The freeholder had gone bankrupt and the freehold passed to the crown who just sat on it - no insurance and no maintenence done ,which apparently they are legally entitled to do . I had to sell it for cash as any potential buyer couldn't get a mortgage . I lost my life savings on that flat and now rent . Even if I could I would never buy a leasehold property again and would advise anyone that asked me to think twice about doing so.

I learned the hard way. First place  I bought was a flat and it was absolutely disastrous.
The weight off my shoulders when someone relieved me of in in 2023 I cannot describe.
You lives and learns

By the way service charges can be challenged at the first tier tribunal and the fee is £100.

Never buy a new build - I learned the hard way. Like a new car that loses 30% as soon as you drive off the forecourt the same applies to new builds.

It’s shocking that the developers have walked away and no one is accountable.

I'd like to sell my house and buy an apartment in Liverpool City centre  but the service charge is higher than the mortgage I've just finished paying!!!

Clearly regulation is urgently needed in this area. Flats should be a reasonably affordable and attractive option, especially for young and single people. The fact that they're not, speaks volume's about the corrupt malpractice of the business and how much buyers are just units to extract wealth from, with very little control or rights, in their own properties. An absolute disgrace.

Another good data driven video and information people need to know. Thanks for sharing. 👍

The new builds near me are luxury flats, high specs, suitable for a couple with well paid jobs.
Yes, there is a need for these, but developers are not building less expensive flats for a wider population.

this to me is strange. I bought apartments in my country (portugal) and all of them more than doubled their price, while being rented and paying themselves, beside giving me an extra. I think the problem is that in The UK there is the house alternative, in countries where everyone lives in apartments that is the normal, they don't devalue, they only go up...

This is a good presentation with real experience and supporting data-

That's why you see leasehold flats raffled off on Raffall.  You think you're gonna win big but you just win a bucketload of problems......

Most people very rarely buy a flat through choice, and the leasehold tied into these properties are causing them to sell far below their proper prices

There is nothing surprising here. When you buy a brand-new apartment, you are not just paying for the square footage. You are paying for the whole new-build effect: a new kitchen, fresh renovation, clean communal areas, a modern façade and the overall look of a new building.

But after 10 years, and especially after 20 years, it is a completely different product. Even if you renovate the flat inside, the building itself still gets older. The facade does not look as fresh, the entrance and communal areas wear out, the design becomes dated, and buyers can see that.

There is also always a premium for something new, just like with a new car. Later it loses value not because the market has collapsed, but because it is simply no longer new.

Comparing this directly with houses is also misleading. Two houses can be a similar size, but one can be ugly, run-down, badly located or need a lot of money spent on it. Another one can be beautiful, well-kept, in a better spot, with a nice garden and expensive renovation. The price difference can be huge, but that does not mean one of them “fell by 40%”. It just means they are different properties in terms of condition, appearance, location and buyer appeal. Same logic applies to new-build flats.