Nearly 390,000 first-time buyers completed a purchase in 2025 — an 18% jump from the year before — and more than half of all mortgage-backed sales went to people buying their first home. That tells me something important: the market is moving, but it’s moving differently depending on where you look and what you’re buying. I’ve been covering UK property long enough to see patterns repeat, and right now the biggest shift I notice is how many buyers are turning to apartments as a realistic way in. If you’re thinking about buying a flat, the numbers and the practical steps matter more than ever.
That last figure — 22% of new builds being apartments — is up from 18% in 2022, and in cities like London it jumps to 58%. The point is clear: apartments are becoming a bigger part of the housing stock, and for many buyers they’re the most affordable route onto the ladder. But buying a flat comes with its own set of rules, costs, and pitfalls that don’t apply to houses. Here’s what you actually need to know.
What leasehold ownership actually means for you
Most people assume buying a flat works the same as buying a house. It doesn’t. The single most important difference is that almost all apartments in England and Wales are leasehold. You own the flat itself — the space inside the walls — but the land it sits on belongs to a freeholder. That freeholder sets the ground rent, manages the building, and charges service fees. If the lease drops below 80 years, the value of your flat can fall sharply and lenders may refuse a mortgage. I’ve seen buyers get stuck because they didn’t check the lease length before making an offer. My first move would always be to ask the seller or estate agent for the lease term and the number of years remaining — in writing — before you spend a penny on surveys or legal fees.
If you’re looking at a flat with a lease under 90 years, you need to factor in the cost of extending it. That can run into thousands of pounds and involves a formal legal process. Some sellers will extend the lease before selling, but many won’t. It’s one of those details that can turn a good deal into a bad one if you’re not paying attention. For a deeper look at the full process, I’d recommend reading this complete guide to buying your first apartment.
Why the deposit gap hits apartment buyers hardest
The average first-time buyer deposit nationally sits between £60,000 and £64,000 — roughly 20–25% of the purchase price. In London, that figure more than doubles to over £120,000. For someone earning the median salary of £34,000 and saving 15% of their gross income, a 10% deposit on a £226,000 property would take about 4.4 years. But in London, where the average FTB property costs £472,000, that same saver would need 9.3 years just to reach a 10% deposit. And that’s before rent and living costs.
What I tend to notice is that apartment buyers often have a slightly lower budget to begin with, which makes the deposit gap even more punishing. A flat in the North West might cost £186,000, requiring a deposit of around £37,000 at 20%. That’s still a lot of money, but it’s achievable in about 7 years of disciplined saving. Compare that to the South East, where the average FTB price is £299,000 and the deposit needed is £60,000–£75,000. The regional divide isn’t just about house prices — it’s about how long you have to wait to get in.
If you’re buying without family support, the numbers are sobering but not hopeless. The Mortgage Guarantee Scheme is still in place, supporting 95% loan-to-value mortgages on homes up to £600,000. That means you could put down just 5% — though you’ll pay higher interest rates and need to pass stricter affordability checks. The Lifetime ISA also gives you a 25% government bonus on savings up to £4,000 per year, which can shave a year or two off your savings timeline. For more on how the numbers stack up between flats and houses, this comparison of apartment versus house costs is worth a read.
Where apartment buyers most often slip up
I’ve watched enough transactions fall through to know where the traps are. The mistakes tend to cluster around a few predictable areas, and they’re almost always avoidable if you know what to look for.
Ignoring the service charge history
Service charges on apartments can rise sharply after you move in. The seller or estate agent will give you the current figure, but what matters is the trend. Ask for the last three years of service charge statements. If they’ve gone up by more than inflation each year, that pattern is likely to continue. A £150 monthly charge might seem manageable, but if it jumps to £200 within two years, that’s an extra £600 a year you hadn’t budgeted for. Some buildings also have major works planned — new roofs, lift replacements, cladding remediation — that can trigger a one-off charge of thousands of pounds. Always ask the managing agent for the building’s reserve fund balance and any planned major works.
Overlooking the ground rent clause
Ground rent is the annual fee you pay to the freeholder. Some leases have ground rent that doubles every 10 or 25 years, which can turn a £250 annual charge into £2,000 over time. Lenders are increasingly wary of properties with escalating ground rent, and some will refuse a mortgage if the ground rent exceeds 0.1% of the property value. Check the lease for the ground rent review pattern. If it doubles, you may struggle to sell later. A good property solicitor will flag this, but don’t rely on them catching everything — read the lease yourself or ask them to explain the ground rent clause in plain English.
Forgetting to check the building’s cladding
Since the Grenfell tragedy, lenders have become much stricter about cladding on high-rise buildings. If your flat is in a building over 18 metres tall with unsafe cladding, you may not be able to get a mortgage at all — even if the building has an EWS1 form (External Wall Fire Review certificate). Some lenders also require an EWS1 form for buildings under 18 metres if the cladding is aluminium composite material (ACM) or high-pressure laminate (HPL). Before you make an offer, ask the seller or estate agent whether the building has an EWS1 form and what rating it received. A B2 rating means remedial work is needed, and that can take years and cost thousands.
Underestimating the cost of lease extension
If the lease on a flat drops below 80 years, the cost of extending it increases significantly because the freeholder is entitled to 50% of the “marriage value” — the increase in the property’s value after the extension. For a flat worth £200,000 with a 70-year lease, extending it could cost £10,000–£15,000 or more. And the process takes months. If you’re buying a flat with a lease under 85 years, factor the extension cost into your budget from day one. Some buyers negotiate a price reduction to cover it, but you need to know the figure before you can negotiate.
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| Region | Average FTB Price | Average Deposit | Deposit as % of Price |
|---|---|---|---|
| London | £472,000 | £120,000+ | ~25% |
| South East | £299,000 | £60,000–£75,000 | ~22% |
| East of England | £277,000 | £55,000–£65,000 | ~21% |
| North West | £186,000 | £35,000–£40,000 | ~20% |
| Yorkshire & Humber | £179,000 | £25,000–£30,000 | ~18% |
| North East | £139,000 | £25,000–£30,000 | ~18% |
If you’re buying in a city where apartments make up a large share of new builds — like Manchester at 45% or Birmingham at 38% — these regional price differences matter even more. A flat in Manchester might cost £186,000, but the service charge and ground rent could be higher than in a smaller city because of the building’s amenities. Always compare the total monthly cost — mortgage plus service charge plus ground rent — against your budget, not just the mortgage payment alone.
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How to buy an apartment without getting caught out
Once you know where the traps are, the process becomes much more straightforward. Here’s the practical sequence I’d follow if I were buying a flat today.
Get your finances in order before you view
Before you look at a single property, get a mortgage agreement in principle. This tells you exactly how much a lender is willing to lend you, and it shows estate agents you’re serious. The Mortgage Guarantee Scheme means you can put down as little as 5% on homes up to £600,000, but the interest rate will be higher than a 10% or 15% deposit. Use a mortgage broker to compare deals — they can access products you won’t find on comparison sites. Also open a Lifetime ISA if you haven’t already; the 25% government bonus adds up quickly. You can put in up to £4,000 per tax year, and the bonus is paid when you use the money to buy your first home.
Hire a solicitor who knows leasehold law
Not all property solicitors are equal when it comes to leasehold flats. You need someone who handles leasehold transactions regularly and knows how to spot problematic clauses. They’ll check the lease length, ground rent terms, service charge accounts, and any restrictions on pets, subletting, or alterations. If you’re buying a flat with a short lease, they can also handle the lease extension process. The cost of a good solicitor is usually £1,000–£2,000, but it’s money well spent if it stops you buying a flat you can’t sell later. If you need to find a property lawyer quickly, you can get connected with one online who specialises in leasehold transactions.
Commission a full building survey
A mortgage valuation is not a survey. It only checks whether the property is worth what you’re paying. A full building survey (RICS Level 2 or Level 3) will inspect the structure, roof, windows, plumbing, and electrics. For a flat, it should also check the communal areas and the building’s overall condition. If the survey reveals major issues — like a leaking roof or outdated electrics — you can negotiate the price down or pull out before you’re committed. The survey costs £500–£1,500 depending on the property size and location, but it can save you tens of thousands in unexpected repairs.
Check the building’s management and insurance
Ask who manages the building and how responsive they are. A poorly managed block can mean delayed repairs, unresolved disputes, and rising service charges. You can usually find reviews online or ask other residents. Also check whether the building has a sinking fund — a reserve of money set aside for major repairs. If it doesn’t, you could face a large one-off charge when the roof needs replacing or the lift breaks down. A well-run building with a healthy sinking fund is worth paying a bit more for.
- 1Get a mortgage agreement in principleThis confirms how much a lender will lend you and shows sellers you’re a serious buyer. Use a broker to compare rates, especially if you’re putting down less than 10%.
- 2Hire a leasehold-specialist solicitorThey’ll review the lease, service charges, ground rent, and any restrictions. Don’t use a general conveyancer who handles one leasehold flat a year.
- 3Commission a full building surveyA RICS Level 2 or 3 survey checks the structure and communal areas. Use the results to negotiate or walk away if the issues are too big.
- 4Check the building’s management and sinking fundAsk for the last three years of service charge statements and the reserve fund balance. A well-managed block with a healthy sinking fund is a safer investment.
If you’re buying a flat in a building with a concierge or shared amenities, check whether those services are included in the service charge or charged separately. Some buildings charge extra for parking, gym access, or storage units. Those costs can add £50–£100 per month and affect your affordability calculations. For a more detailed breakdown of what to look for in a lease, this guide to buying an apartment in the UK covers the legal side in more depth.
Frequently asked questions about buying an apartment
Can I get a mortgage on a flat with a short lease? ▾
What happens if the building has unsafe cladding? ▾
How much does it cost to extend a lease? ▾
Are service charges tax-deductible? ▾
Can I buy a flat with a 5% deposit? ▾
What’s the difference between share of freehold and leasehold? ▾
The key takeaway is that buying an apartment isn’t harder than buying a house — it’s just different. The numbers show that apartments are more affordable in most regions, and the share of new builds that are flats is rising. But the leasehold structure, service charges, and cladding issues mean you need to do more homework upfront. My advice is to start with the lease length and the service charge history before you fall in love with a property. If those two things check out, everything else is manageable.
If this was useful, you might also want to read Apartment vs House: Which Is the Smarter UK Investment Right Now?
Sources and Further Reading
Apartment Buying in the UK: Is It Really a Better Investment Than Renting? — A practical look at the long-term financial comparison between buying and renting a flat.
First-Time Buyer Statistics UK 2026. Shaded Canvas, 2026.
New Build Apartment Market Trends. New Builds UK, 2026.
