House prices in certain areas across the United Kingdom have experienced significant declines, with some locations seeing drops of up to 60% over the past year. Despite this, the overall UK housing market has not registered a nationwide decrease in prices during the same period.

According to recent data compiled by MG Timber and Online Marketing Surgery, utilising statistics from the Office for National Statistics, the downturn has been particularly pronounced in specific regions of London and parts of southern England. Notting Dale, near Notting Hill in West London, was among the worst affected areas, where average home prices fell from approximately £1.29 million in March 2025 to £520,000 in March 2026, marking a 60% decline.

Other notable decreases were observed in Birmingham, specifically in the Five Ways South and Calthorpe Park districts, where average house values dropped by 51%, from around £500,000 to £245,000. Further north, areas such as Easington and Hawthorn in County Durham saw house prices fall by 37%, while declines of 36% were recorded in Harraton, Rickleton, and Fatfield in Tyne and Wear.

In London, Shadwell North, located in Tower Hamlets, experienced a 37% reduction in average house prices. Elephant and Castle in Southwark also witnessed a substantial drop of 35%. The national average house price currently stands at £273,000, while the London average remains higher at approximately £550,000.

Analysts attribute these steep localised price falls to a combination of factors including increased tax burdens, capital outflows, and downturns in local economies. A representative from Online Marketing Surgery described the market’s condition as “uneven,” highlighting how these regional disparities contrast with the more stable overall market performance.