More than a third (35%) of UK homes are in postcode areas where house prices are falling, up from 12% a year ago, the latest Zoopla house price index reveals.
Although, the average UK house price now stands at £273,100, which is 0.8% higher than last year, the national figure masks significant regional and local differences.
The index found that average home values are falling by 1% in London with the average home now £5,400 lower than a year ago, compared to the average home in the North West, which is worth £6,600 more than a year ago, an increase of 3.2%
At a more localised level, 85% of homes in London and the South East are in postcode areas with price falls.
Three quarters of homes in the Eastern region and 42% in the South West are located in postcode areas registering price falls.
The largest price falls are concentrated across North West London (2.2%) and WC London (5.7%) but also along the south coast including Bournemouth (1.7%), Truro (2.2%) and Torquay (1.7%).
House prices are rising across the rest of the country where homes are more affordable and the impact of higher mortgage rates is less pronounced.
There are still areas of the country where home values are rising by more than 3%, particularly across the North West and Scotland.
House prices are rising by more than 4% in Liverpool, Carlisle and Kilmarnock postcode areas.
Zoopla executive director Richard Donnell says: “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.”
“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.”
“There is still demand to buy homes, and those that are well priced and presented are selling just as quickly as last year.”
Commenting on the figures, Propertymark chief executive Nathan Emerson states: “The housing market is becoming increasingly localised, with higher mortgage costs putting pressure on affordability, particularly in southern England.”
“While increased choice is giving buyers greater scope to negotiate, realistic pricing and informed advice from property professionals remain essential to achieving successful sales.”
“Despite regional price falls, demand remains, but buyers are increasingly selective and focused on value. Ultimately, market confidence will depend on improved affordability, access to suitable housing and the ability of buyers and sellers to move with confidence.”
