Overview
- Zoopla’s latest index shows 35% of UK homes are in postcode areas where prices fell year‑on‑year, up from about 12% a year earlier and concentrated in London and the South East where roughly 85% of homes sit in falling postcodes.
- Despite widespread local falls, the national average house price is 0.8% higher over the year at £273,100, reflecting stronger growth in parts of the North West and Scotland.
- Market activity is subdued with agreed sales down about 7% and homes for sale up about 7%, a shift Zoopla links to mortgage rates that are cited near 6% and making buyers more selective.
- The government has proposed a 'Your First Home' scheme that would let some first‑time buyers buy new builds with a 2.5% deposit and up to a 20% equity loan, and officials say full design, local price caps and income limits will be set out in the Budget.
- The practical effects are local: modest price falls mean sellers must price carefully to sell, buyers have more room to negotiate, and commentators say a sustained drop in average mortgage rates below about 5% would be the clearest path to stronger market activity and higher demand for new homes.