Homeowners in central London face a property value crisis as WC postcode areas recorded a five per cent annual decline in June 2025, with the average house price now sitting at £823,000.
According to the latest data from Zoopla, London’s prestigious W postcode suffered a 1.5 per cent drop, with average values reaching £768,900.
The South West experienced similar pain, as Truro properties fell 1.3 per cent to £314,400, Torquay declined 1.2 per cent to £293,700, and Exeter dropped 1.1 per cent to £308,800.
These figures could spell trouble for homeowners in the south who are trying to sell their properties for a good price.
On the other hand, several northern postcodes saw success in the same period, confirming a dramatic north-south divide.
Indeed, while WC postcode areas recorded a five per cent annual decline, Belfast properties surged 6.1 per cent higher, meaning an average house price of £186,500.
Meanwhile, Halifax properties gained 4.2 per cent, reaching £175,900, whilst Scottish areas performed strongly.
Falkirk, Motherwell, and Tweeddale each achieved 3.6 per cent growth, with average values of £167,500, £132,000, and £176,000 respectively.
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The WC postcode area in London experienced the weakest annual house price inflation in June 2025
Postal areas with the weakest annual house price inflation in June 2025
- WC – London, -5.0 per cent
- W – London, -1.5 per cent
- TR – Truro, -1.3 per cent
- TQ – Torquay, -1.2 per cent
- EX – Exeter, -1.1% per cent
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The south-west, including Truro, Torquay, and Exeter, experienced weak house price inflation
Generally speaking, Zoopla has slashed its annual growth prediction from two per cent to merely one per cent, citing elevated stamp duty expenses and increased housing stock as key factors constraining values.
The data underscores how southern homeowners face mounting challenges in realising property gains, particularly in areas where values already sit substantially above national averages.
But despite the challenging price environment, market activity has surged unexpectedly. Agreed transactions rose eight per cent during the four weeks ending June 20 compared to 2024, as purchasers rushed to complete before summer holidays.
The experts explained that recent regulatory changes have boosted borrowing capacity. The Financial Conduct Authority’s clarification on mortgage assessments enables lenders to approve larger loans, supporting transaction volumes.
However, April’s termination of temporary stamp duty relief continues to dampen prices.
Purchasers are negotiating harder to offset these increased costs, particularly affecting southern regions where property values remain elevated.
The average UK home now costs £268,400, representing a modest 1.3 per cent annual increase.
Zoopla’s executive director, Richard Donnell, acknowledged the paradox: “We’re seeing healthy levels of demand and sales, but this isn’t sparking faster price inflation.
“Many more home buyers are paying stamp duty since April and want this extra cost reflected in the price they pay.”
Andrews Property Group CEO, David Powell, warned: “The slowdown in house prices is starting to impact consumer confidence, illustrated by the increased numbers of properties currently on the market for sale.”
Matt Thompson from Chestertons noted that buyers remain cautious, “pausing their search in the hope that the Bank of England will announce another rate cut in August”.
