More than one in three homes in the United Kingdom are located in postcode areas where property values have declined over the past year, industry data shows. According to the property website Zoopla, 35 percent of homes now sit in regions experiencing falling prices, a notable increase from 12 percent reported a year earlier.

The trend is particularly pronounced in London and the South East, where price reductions have been most widespread. Analysts attribute this shift primarily to rising mortgage rates, which have increased the cost of borrowing and subsequently made potential buyers more cautious in their purchasing decisions.

With mortgage repayments higher, many buyers are adopting a more selective approach, reducing demand and contributing to increased inventory. Zoopla’s data indicates that the number of homes listed for sale has grown by 7 percent compared to last year. This greater supply provides buyers with more negotiating leverage and in turn encourages sellers to adjust asking prices downward.

The combination of these factors reflects a cooling property market after years of rapid price growth. While some areas maintain strong values, the overall pattern points toward increased pressure on sellers to offer more competitive pricing amid changing economic conditions.