Zoopla’s October 2026 data shows UK house prices diverging sharply by region — essential reading for brokers advising clients
UK house price inflation slowed to 0.8% in September 2026, according to Zoopla’s October House Price Index. Higher borrowing costs have carved an increasingly sharp divide between northern and southern markets.
For brokers, the data is more useful than a headline. It offers a postcode-level toolkit for guiding clients through one of the most localised housing markets in years.
The national average masks significant divergence. Belfast leads all tracked cities with 5.1% annual growth, followed by Liverpool at 4.4% and Glasgow at 2.8%. At the other end of the table, Cambridge is down 1.7%, Bournemouth 1.8%, and London 1.0%. That London decline amounts to £5,400 below where prices stood a year ago.
The South East and East of England are also in negative territory.
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What is happening to UK house price falls across the country?
UK city house price performance, September 2026
| City | Average price | Annual change (Sept 2026) | Annual change (Sept 2025) |
|---|---|---|---|
| United Kingdom | £273,100 | +0.8% | +1.5% |
| Belfast | £204,800 | +5.1% | +8.2% |
| Liverpool | £173,600 | +4.4% | +3.4% |
| Glasgow | £168,000 | +2.8% | +3.6% |
| Newcastle | £165,300 | +2.6% | +2.6% |
| Manchester | £240,100 | +2.0% | +2.7% |
| Sheffield | £179,900 | +1.5% | +2.6% |
| Birmingham | £218,100 | +1.2% | +2.0% |
| Edinburgh | £284,300 | +1.2% | +2.1% |
| Cardiff | £260,800 | +1.0% | +1.8% |
| Leeds | £216,500 | +1.0% | +2.3% |
| Leicester | £229,800 | +0.7% | +1.3% |
| Nottingham | £204,800 | +0.6% | +1.2% |
| Southampton | £257,300 | +0.2% | +0.1% |
| Aberdeen | £130,100 | 0.0% | -0.5% |
| Bristol | £341,600 | -0.3% | +1.7% |
| Portsmouth | £275,100 | -0.8% | +0.2% |
| Oxford | £445,800 | -0.9% | +0.9% |
| London | £523,100 | -1.0% | +0.2% |
| Cambridge | £454,200 | -1.7% | +0.2% |
| Bournemouth | £312,300 | -1.8% | -1.7% |
Source: Zoopla House Price Index, October 2026
Zoopla’s index tracks house prices across 119 postal areas. Its data shows 35% of homes now sit in postcode areas where annual values have declined. That is more than double the 12% share recorded a year earlier.
In London and the South East, that figure rises to approximately 85%.
The driver is mortgage affordability. Higher house prices in the south mean that the same rate environment carries a heavier cost burden for borrowers there. As UK mortgage rates have reached a three-year high, the impact on buyer behaviour has become measurable.
Sales agreed across the UK are down 7% year-on-year in the four weeks to 18 October 2026.
Nathan Emerson, CEO at Propertymark, said the market’s regional character demanded sharper advisory skills.
“The housing market is becoming increasingly localised, with higher mortgage costs putting pressure on affordability, particularly in southern England,” he said. “While increased choice is giving buyers greater scope to negotiate, realistic pricing and informed advice from property professionals remain essential to achieving successful sales.
“Despite regional price falls, demand remains, but buyers are increasingly selective and focused on value. Ultimately, market confidence will depend on improved affordability, access to suitable housing and the ability of buyers and sellers to move with confidence.”
Why is pricing accuracy more critical than ever for sellers?
Stock on the market is running 7% higher than a year ago. That wider choice is shifting negotiating power toward buyers, particularly in southern England. Yet the increase has not translated into faster completions.
The national median time from listing to sale agreed sits at 44 days — no change on the previous year. In Scotland, properties are finding buyers in 19 days. In London, the median sits at 56 days.
Zoopla’s Q2 2026 data shows a direct link between pricing discipline and speed of sale. Homes listed below their estimated value converted to a sale within 90 days in 41% of cases.
Where sellers priced at least 20% above that estimate, the conversion rate fell to 26%. For those who reduced their asking price after listing, only 19% completed a sale within the same window.
Buyer demand has been tracking unevenly across regions since April 2026. Clients who treat the national 0.8% headline as their reference point risk misjudging their local market entirely.
What does the Budget mean for mortgage rates in 2027?
Zoopla flags the Budget as the key near-term variable for the housing market. Its most important influence is unlikely to be any targeted buyer measure. Stamp duty adjustments and the proposed Your First Home equity loan scheme are secondary.
What matters more is the Budget’s effect on bond markets and inflation expectations. A Budget that stabilises those markets and contains inflationary pressure could help lower UK house price borrowing costs through 2027.
