The gap between house and flat prices across the UK has reached its widest level in 30 years, according to analysis from Zoopla.

The average price of a UK house has risen by 43% since 2016, compared with just 10% growth for flats over the same period, Zoopla found.

As a result, the average house now costs £327,000, while the typical flat is valued at £193,000.

Zoopla’s data shows that houses now cost 1.7 times more than flats across the UK, up from 1.3 times a decade ago. Outside London the gap is even more pronounced, with houses costing 2.3 times the price of flats compared with 1.8 times in 2016.

The trend is not mirrored in Scotland, where the absence of England’s long leasehold system has helped maintain a more balanced market. There, the house-to-flat price ratio stands at 1.9 times, only slightly higher than 1.8 times a decade ago and largely unchanged over the past 30 years.

Zoopla says concerns around leasehold ownership are contributing to weaker demand for flats in England.

Four out of five flats currently listed for sale in England are leasehold. Analysis of listings found the average leaseholder pays around £200 annually in ground rent and £1,900 in service charges, creating a combined yearly cost of approximately £2,100.

While homeowners also face maintenance and insurance costs, they typically manage these expenses independently. Scottish flat owners share responsibility for communal repairs but are not subject to annual ground rent payments or diminishing lease terms.

The property portal argues that the widening gap between house and flat values cannot be explained by running costs alone. Affordability is also a major factor, particularly in the Midlands and northern England, where many first-time buyers can afford houses without first purchasing a flat.

More than half of first-time buyers outside London are seeking a three-bedroom house, according to Zoopla. The West Midlands has the largest house-to-flat price differential in England, with houses costing 2.5 times more than flats.

In contrast, London’s ratio stands at 1.9 times. Despite high property prices, flats remain the primary route into homeownership for many buyers in the capital, with seven in ten first-time buyers actively searching for a flat.

The slowdown in demand for flats is also reflected in selling times.

In Scotland, flats and houses both take a median of 15 days to sell. However, in England and Wales outside London, flats remain on the market for 42 days on average, nine days longer than houses.

The pattern is similar in London, where flats take an average of 45 days to sell compared with 37 days for houses.

Zoopla says the longer selling times suggest buyers remain cautious about purchasing flats, particularly due to the additional complexity and uncertainty associated with leasehold ownership.

The findings come as the Government prepares major reforms to England’s leasehold system.

Ground rents have already been banned on new leases, while a draft Commonhold and Leasehold Reform Bill published in January proposes capping existing ground rents at £250 a year, ending the sale of new leasehold flats and making commonhold the default ownership structure for new-build apartments.

The legislation was included in the King’s Speech in May and is expected to be introduced to Parliament later this year, with Royal Assent targeted for 2027.

Zoopla’s analysis found that annual leasehold costs typically account for between 0.7% and 1.3% of a property’s value, a threshold closely monitored by mortgage lenders. Properties with higher service charges or ground rents can face additional scrutiny, particularly in lower-value housing markets.

Zoopla executive director Richard Donnell said the record gap between house and flat prices could create opportunities for informed buyers.

“The gap between house and flat prices has never been wider, and for buyers who are prepared to do their homework, that presents an opportunity,” he said.

“For many, flats remain the main route into home ownership, particularly in London and the South East where the cost of buying a house is higher.

“Buying a leasehold flat is more complex than buying a house. Lease length, service charges and ground rent terms all matter and vary significantly from one property to the next. This complexity is not the same as risk, and the leasehold system is being actively reformed.”

Donnell added that buyers should pay close attention to lease length, service charge history, ground rent terms and building safety considerations before purchasing a flat.