Millions of properties have dropped thousands of pounds in value as higher mortgage rates continue to batter Britons’ pockets.
New calculations by property website Zoopla estimates around a third of homes recorded price declines of 1% or more last year, equating to just over nine million properties.
While 2024 saw a broad recovery of house prices generally, some areas witnessed the value of properties drop by as much as £44,300.
Richard Donnell, executive director at Zoopla said: “The housing market returned to growth in 2024 but the pattern of home value changes across Britain is far from uniform.
“There is headroom for prices to increase in markets where housing is affordable compared to incomes, which covers many parts of northern England and Scotland.
“In contrast, affordability is more of a constraint on price rises in southern England, where the market continues to adjust to higher borrowing costs.”
However, he added: “Faster income growth is helping to repair affordability, supporting moving decisions in 2025.”
Here are the areas with the highest percentages of homes falling in value in 2024 in each region or nation, with the percentage of homes with a decrease of 1% or more, and the average cash decrease among property values:
- London, Kensington and Chelsea, 72% – £44,300 decrease
- South East, Broadstairs, 89% – £15,300 decrease
- South West, Ferndown, 83% – £14,400 decrease
- East of England, Bungay, 79% – £8,400 decrease
- East Midlands, Corby, 74% – £6,000 decrease
- Yorkshire and the Humber, Beverley, 57% – £5,100 decrease
- Scotland, Inverurie, 65% – £4,200 decrease
- North East, Houghton Le Spring, 48% – £3,800 increase
- Wales, Pwllheli, 64% – £3,650 decrease
- North West, Cheadle, 54% – £2,000 decrease.
Meanwhile, around half of UK homes increased in value by 1% or more in 2024, Zoopla estimated. This equated to around 15 million properties, up from just over 10 million in 2023.
Properties in Berkhamsted, Hertfordshire, increased by the highest margin, recording a rise in value of up to 24,500 in 2024.
Meanwhile, just under six million homes last year recorded broadly static prices.
Taking into account price rises and falls, Zoopla estimates the average property value increased by £2,400 overall last year.
Here are the towns with the highest percentages of homes increasing in value in 2024 in each region or nation, with the percentage of homes with an increase of 1% or more, and the average cash increase:
- East of England, Berkhamsted, 53% – £24,500 increase
- Scotland, Carluke, 82% – £8,900 increase
- London, Waltham Forest, 64% – £8,700 increase
- North West, Blackburn, 77% – £8,100 increase
- Yorkshire and the Humber, Normanton, 81% – £7,500 increase
- East Midlands, Glossop, 67% – £7,000 increase
- North East, Peterlee, 83% – £6,100 increase
- West Midlands, Wednesbury, 79% – £6,000 increase
- South East, Thame, 56% – £5,600 increase
- Wales, Ferndale, 74%- £3,900 increase
- South West, Portland, 54% – £2,900 increase.
Mr Donnell said: “Every home has its own trajectory for price changes and millions of owners are tracking the value of their home on Zoopla as part of the decision of when to move home.
“The momentum from 2024 is spilling into 2025 with a seven-year high number of homes for sale. We expect more people to move home in 2025 than in 2024 despite uncertainty over the economic outlook and broadly static mortgage rates.”
