London house prices fall 1% in year to September, Zoopla says
Zoopla's index shows prices down in 22 of 31 postcode areas in London and the South East, with the average London home at £523,100.
Average house prices fell in 22 of 31 postcode areas in and around London in the year to September, according to Zoopla's analysis of agreed sales. Prices rose in six areas and were unchanged in three. The areas covered 85% of homes in London and the South East.
Central London postcodes were hit hardest, with agreed sale prices down by almost 6% in 2025. The average London price was 1% lower than a year earlier, a fall of £5,400 to £523,100. In the South East it fell 0.6% to £382,600.
Moneyfacts figures show London borrowers have faced a £215 rise in monthly housing costs since September last year. The rise in the North East was £90.
Richard Donnell of Zoopla said buyers in the South are more sensitive to higher borrowing costs because prices there are well above those in other parts of the country. He said homes in the North of England cost less than the UK average and stamp duty bills are much lower.
Across Britain, prices fell in 37 of 119 postcode areas, covering 35% of homes, up from 12% a year earlier. Prices fell in five areas in the South West, eight in the East of England, one in the West Midlands and one in Wales. None of the falls were in the North of England or Scotland. In the North West, prices rose 3.2%, taking the average home to £211,400.
Tom Bill of Knight Frank said "price growth has effectively ground to a halt this year". He expects downward pressure to continue in the final months of the year and said this week's Budget could add to it.
Donnell welcomed the Your First Home scheme and called for stamp duty reform. He said changes could support buyers and sellers in southern England, where transaction costs are highest.
