Zoopla says 35% of UK homes sit in postcodes with falling prices

Zoopla's index to September 2026 finds price drops concentrated in London and the South East, while some north‑west and Scottish postcodes still see gains.

By Felo News Desk · Published Tue, 27 Oct 2026 00:40:23 GMT

Zoopla reported on Thursday that 35% of homes across the United Kingdom are located in postcode areas where house prices have fallen over the past year.

What happened

The property website’s latest house‑price index, which includes data through the end of September 2026, shows the share of homes in falling‑price postcodes climbing from 12% a year earlier to 35% now. Declines are most acute in London and the South East, where Zoopla estimates that 85% of homes sit in postcodes with dropping values. Despite this, the average UK house price is marginally higher than a year ago – up 0.8% to £273,100.

What the reports add

Both the Standard and the Independent noted that higher mortgage rates are squeezing buyers, while the supply of homes for sale is about 7% above the previous year, giving purchasers greater negotiating power.
The outlets pointed out that, although many areas are seeing price falls, some regions – notably parts of the North West and Scotland – are still posting annual growth above 3%.
Zoopla highlighted specific postcodes where prices are rising faster than 4% a year, including locations in Liverpool, Carlisle and Kilmarnock.
The articles referenced the government’s upcoming Budget, which will detail the “Your First Home” scheme – a programme that allows first‑time buyers to purchase a new‑build property with a 2.5% deposit, supplemented by a government loan covering an additional 20% of the cost. The Budget is also set to allocate more than £1 billion for social and affordable housing and to grant English mayors and regional leaders expanded powers and funding.

What was said

“The extra cost of mortgages has made home buyers more selective while greater choice of homes for sale has increased the scope to negotiate on price,” Richard Donnell, executive director at Zoopla, told the outlets.

“The impact is being felt by sellers in southern England where house‑price falls are most concentrated as average prices continue to rise across the rest of the country,” Donnell added.

“There is still demand to buy homes, and those that are well priced and presented are selling just as quickly as last year,” he continued.

“Getting the price right from the start is essential. Overpricing significantly reduces the chances of selling, so sellers should seek advice from local agents on buyer demand and the right asking price for their home,” Donnell said.

“The biggest boost the Budget could provide to the housing market would be to create the conditions for lower mortgage rates. We expect activity to strengthen once mortgage rates start moving back below 5%,” Donnell said regarding the forthcoming Budget.

“Changes to stamp duty could support buyers and sellers, particularly in southern England where transaction costs are highest,” he added.

How it came about

Zoopla’s findings sit within a broader cooling of the UK property market after several years of rapid growth, mirroring recent reports of price declines in Australian capitals, Perth and Calgary. The combination of higher interest rates, cost‑of‑living pressures and new government housing initiatives is shaping buyer behaviour and seller strategies across the country.

Key facts

35% of UK homes are in postcode areas where house prices fell over the past year (standard.co.uk)
The proportion of homes in falling‑price postcodes rose from 12% a year ago to 35% (standard.co.uk)
85% of homes in London and the South East are in postcode areas with price falls (standard.co.uk)
Average UK house price is £273,100, 0.8% higher than a year earlier (standard.co.uk)
Homes for sale are 7% higher than last year, giving buyers more choice (standard.co.uk)