House prices fall in a third of postcodes as rates bite

Summarised from This is Money's report · Updated 26 Oct, 10:07 · Archive

House prices have fallen in a third of British neighbourhoods in the past year as high mortgage costs deter buyers, according to property website Zoopla. The website found 35 per cent of homes are now in postcode areas where prices are falling, up from 12 per cent a year ago. The losses are concentrated in London and the South East, where 85 per cent of homes are in postcodes seeing price falls. Three-quarters of postcodes in the East of England are experiencing price declines, along with 42 per cent of postcodes in the South West.

Although prices are falling across 35 per cent of Britain, the average house price remains slightly higher than a year ago at £273,100, representing a 0.8 per cent increase. However, the average London home has lost £5,400. Prices are still rising across most other regions, with average prices £6,600 higher in the North West over the past year. Higher mortgage rates have increased the cost of buying; the mortgage needed to buy a home with a 20 per cent deposit is currently 64 per cent more expensive than it was five years ago.

These higher costs are affecting transaction volumes. Sales agreed over the last four weeks were 7 per cent lower than a year ago. Meanwhile, the number of homes for sale is 7 per cent higher than last year, putting buyers in a stronger position to negotiate discounts.

Read the report

• House prices fall in a third of postcodes as high mortgage rates continue to biteThe losses are concentrated in London and the South East, where 85% of homes are in postcodes where prices are falling.This is Money · 26 Oct, 09:54

In this story: Zoopla · London · South East · East of England · South West · North West

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem