House prices now falling in 1 in 3 areas of Britain

Research by ValuQ: we analysed the August 2026 UK House Price Index file published by HM Land Registry on 21 October, counting how many of Great Britain's 349 local authority areas had lower average prices than a year earlier, overall and for each type of home.

ValuQ Property Watch. The national figure is still positive, at 0.9% a year. Underneath it, the number of places going backwards has jumped for the second month running.

How many areas are seeing house prices fall?

In August 2026, 123 of 349 local areas in Great Britain had average prices below their level a year earlier. That is roughly one area in three, up from about one in five in June.

England has 107 of its 295 areas falling, Scotland 10 of 32 and Wales 6 of 22. Over the two months from June, 67 areas switched from annual growth to annual falls.

Which homes are losing value?

Flats, by a wide margin. The UK average flat was worth £194,148 in August, 1.6% less than a year earlier, while every type of house rose.

A flat owner is now more likely than not to live in an area where flat prices are lower than a year ago. Owners of semi-detached and terraced homes are in the opposite position, with prices rising in more than three areas in four.

Where are prices falling fastest?

Central London leads the falls. Inner London prices were down 6.6% over the year, and 22 of London's 33 boroughs had annual falls, while the North East was up 3.2%.

Areas with few sales can swing sharply from month to month, so we have left out the City of London and Shetland, where very small numbers of sales drive the figures.

What is happening in Basildon and the rest of south Essex?

Essex is split down the middle. Basildon edged back into growth, while neighbouring Thurrock and Castle Point moved further into falls.

What does this mean if I am thinking of selling?

It means the national headline tells you very little about your own home. A semi in Harlow and a flat in Tower Hamlets sit in the same 0.9% average, but one has gained and the other has lost value.

• If you own a flat, price from recent sales of flats in your own block or street, because the area average for all homes will flatter you.
• If your area has just turned negative, expect buyers to have seen the headlines and to negotiate; Rightmove found 34% of homes for sale had been reduced by October.
• If your area is still rising, a realistic price still matters; homes needing a cut took 119 days to find a buyer in Rightmove's October 2026 index, against 39 days for homes priced right.
• Whatever your area is doing, the question that counts is what your own home would sell for this autumn.

The national average is up 0.9%, yet prices are falling in one area in three. Your street and your type of home now matter more than the headline.

How can I find out what my own home is worth?

Ask the people who know your street. ValuQ gives UK homeowners free, side-by-side property valuations from competing local estate agents, and agents never get your details until you choose. It is free, always, and it shows you where your home sits in a market that is moving in different directions.

How we did this

ValuQ downloaded HM Land Registry's full UK House Price Index file for August 2026, published on 21 October 2026, and counted the local authority areas in England, Scotland and Wales whose 12-month price change was below zero, overall and for each property type. Northern Ireland, where prices rose in all 11 areas, is excluded so the count matches our July analysis.

The latest months are provisional and are revised as more sales are registered, so earlier counts differ slightly from those we published in September. The index measures completed sales, so it reflects deals agreed several months earlier.