UK house prices are falling in these areas - is your postcode affected?

Higher mortgage rates have pushed prices down in less affordable parts of the country. Sellers can still improve their chances of finding a buyer.

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New analysis found that more than a third of homes on the market sit in postcode areas where prices are falling.

Zoopla attributed the pressure to two factors: an unusually large supply of properties and high mortgage rates.

Annual house prices dropped in 37 of the 119 postcode areas tracked by the property portal between September 2025 and September 2026. Most of those areas were in London and southern England.

Zoopla said prices are increasing in these regions because homes generally cost less than those in southern England, so higher mortgage rates have had a smaller effect.

Richard Donnell, Zoopla's executive director, said higher mortgage costs had made buyers more cautious, while the larger supply of homes for sale gave them more room to negotiate.

Sellers in southern England are feeling this most sharply, he added, since that is where price declines are concentrated. Average prices are still rising elsewhere in the country."

The postcode areas where house prices are falling

Zoopla's analysis found that prices fell in four regions in the year to September 2026: London, south east England, east of England and south west England.

Only 10 of the 37 postcode areas with falling property values lay outside London and southern England.

West central London recorded the sharpest drop: 5.7%. Llandrindod Wells in Wales followed, with prices down 4.3%.

By September, property values in east central London had fallen 3.8% from the previous year. Truro, in south west England, recorded a 2.2% decline over the same period.

Zooplas found that 85% of homes in London and south east England were located in postcode areas where prices had dropped year-on-year.

Swipe horizontally to scroll. Source: Zoopla

Stamp duty changes could help buyers and sellers

Zoopla's Donnell said the government could take steps to stimulate the housing market in the 2026 Autumn Budget.

He said its greatest effect might be creating the conditions needed for mortgage rates to fall. Once they dropped below 5%, the market would become active again.

Rates rose among lenders after conflict began in the Middle East, helping push inflation up by 3.5% in the year to September.

On 27 October, the average two-year fix stood at 5.97%, compared with 4.83% on 27 February - the day before the US and Israel launched airstrikes on Iran, setting off the war.

Donnell said the government could also reform stamp duty land tax (SDLT).

Zoopla's research indicates that raising the 2% rate threshold from 250,000 to 500,000 could cut moving costs by as much as 7,500. Comparable changes for first-time buyers could save them up to 6,000.

Donnell said the SDLT reforms "could support buyers and sellers, particularly in southern England where transaction costs are highest".

Overlooking Truro's cathedral and city skyline, Cornwall

House prices in Truro, Cornwall, have fallen 2.2% year on year.

How to sell your home in the current market

In a buyer's market, pricing your home correctly from the start gives you the best chance of making a sale.

Zoopla found that 41% of homes listed for sale between April and June 2026 at least 5% below their estimated value found a buyer within 90 days. Among homes priced 20% or more above that estimate, the figure was only 26%.

The initial asking price matters. Zoopla found that only 19% of homes with a price reduction sold within 90 days, compared with 41% of homes sold without a reduction.

Your home needs to make a good first impression. Tidy the garden, clean the windows, and add enough lighting outside.

Indoors, clear away clutter and make each room feel bright and open. Fix small problems too, including leaking taps and flickering lights.

James Waight, head of sales at estate agent John D Wood and Co., said: "As competition between properties grows, even modest improvements can change how buyers view a home."

That presentation also carries across to estate agents' websites and property portals.

Waight added: "Strong photographs, a compelling description, and flexible viewing arrangements can draw more potential buyers. Sellers should pay close attention to what viewers say and address any concern that comes up repeatedly."