So, you’re thinking about buying your first home in London—great choice! In this article, two professional Mortgage Brokers bring you own experiences of Buying a property in London.
London is one of the most exciting and dynamic cities in the world. Whether it’s the job opportunities, buzzing nightlife, cultural diversity, or world-class restaurants and entertainment, there’s something for everyone. But once you’ve decided on London, the next big question is: should you buy a house or a flat?
The good news is that there’s plenty of choice, from Victorian terraces to modern high-rise apartments. But your decision will depend on a few key factors, including your budget, lifestyle preferences, and long-term goals. Let’s break it all down so you can make the right decision.
1. Price: What Can You Afford?
The most important factor for most first-time buyers is price. London property prices vary hugely depending on location. Generally, houses tend to be more expensive than flats in the same area. For example:
- Flats in more affordable areas (e.g., Croydon, Barking, or parts of East London) might start at £250,000–£350,000 for a one-bedroom.
- Flats in prime areas (e.g., Clapham, Islington, or Camden) could be £500,000+.
- Houses in outer zones (e.g., Bromley, Enfield, or Ealing) might start from £450,000–£600,000, whereas
- Houses in central or prime locations could easily exceed £1 million.
Unless you’re open to moving further out, your budget might make the decision for you.
2. Freehold vs Leasehold: What’s the Difference?
Most flats in London are leasehold, while houses are typically freehold—though there are exceptions.
- Leasehold means you own the property but not the land it stands on. You’ll usually pay ground rent and service charges and may need permission from the freeholder for changes to the property. Lease lengths can vary, and if they drop below 80 years, it can impact the value and mortgage options.
- A share of Freehold occurs when you and other flat owners jointly own the freehold. This gives you more control over service charges and building management.
- Freehold means you own the property and the land it sits on, with no lease-related restrictions or extra charges.
The Upside of Leasehold Flats:
- Lower maintenance responsibility—major works are often covered by the building’s management.
- Some flats come with shared amenities, like gyms or concierge services.
The Downsides:
- Service charges and ground rent can be expensive.
- You might have restrictions on pets, subletting, or alterations.
The Upside of Freehold Houses:
- No service charges or lease restrictions—you have full control.
- You can extend, renovate, or modify your home without permission.
The Downsides:
- All maintenance costs fall on you—no management company to cover repairs.
- Typically more expensive than flats in the same area.
3. Upkeep & Maintenance: Flat vs House
A key advantage of flats is that external maintenance is usually handled by the management company. This can include:
- Roof repairs
- Communal area cleaning
- General structural maintenance
Houses, on the other hand, require full maintenance responsibility—so if the boiler breaks or the roof leaks, it’s on you. While this gives you control, it also means higher unexpected costs.
With a share of freehold flats, you and the other flat owners are responsible for maintenance decisions, which can be an advantage if you get along but a hassle if you don’t!
4. Service Charges & Costs
One big difference between flats and houses is service charges. Many flats require you to pay a service charge to cover building maintenance, which can range from a few hundred to several thousand pounds per year, depending on the development.
Some modern apartment blocks with high-end amenities (gyms, concierge, communal gardens) can have very high service charges, sometimes over £5,000 per year!
Houses, by contrast, have no service charge, but you need to budget for maintenance costs, home insurance, and any future repairs.
5. Living Experience: Space, Privacy & Neighbours
Living in a flat means having neighbours above, below, and next to you, which can be a dealbreaker if you value peace and quiet.
- Noise: Flats, especially older ones, may have poor soundproofing.
- Space: Flats generally have less space and limited outdoor areas (though some come with balconies or terraces).
- Communal areas: You may have shared hallways, gardens, or lifts, which means you must rely on others to keep them clean and maintained.
Houses offer more privacy, space, and often a garden, which is great if you work from home, have pets or want outdoor space for children.
6. What’s Best for Investment & Future Growth?
If you’re buying with long-term investment in mind, consider:
- Houses tend to appreciate more in value over time compared to flats.
- Flats in prime locations (e.g., Zone 1–2) can still see strong capital growth.
- Lease lengths on flats matter—a short lease can reduce value while extending can be costly.
If you plan to rent out the property in the future, flats often have strong rental demand, but houses can attract families willing to pay more for space.
Conclusion: House or Flat—Which is Right for You?
There’s no one-size-fits-all answer, but here’s a quick way to decide:
✅ A Flat Might Be Best If…
✔ You want lower upfront costs.
✔ You’re happy with shared amenities and lower maintenance responsibility.
✔ You’re buying in a prime location where houses are out of reach.
✔ You don’t mind service charges and lease restrictions.
✅ A House Might Be Best If…
✔ You want full control over your home.
✔ You value privacy and more space.
✔ You don’t want to pay service charges.
✔ You’re thinking long-term and want better capital growth potential.
Both houses and flats have pros and cons—it all depends on your budget, lifestyle, and future plans. Whether you choose a flat in Zone 2 or a house further out, buying your first home in London is an exciting step!
Need help finding the right mortgage for your first home? Get in touch with an expert mortgage broker. We specialise in helping first-time buyers get the best mortgage deals in London!