Are homes actually selling for less than last year?

If you’ve been following the property market lately, you’ve probably seen mixed signals. On one hand, headlines suggest prices are holding steady - even rising slightly. On the other, you might be hearing stories of homes selling for less, price reductions, or even losses.

So what’s actually going on?

The honest answer: both are true. And understanding why could make a big difference if you’re planning to sell.

The headline number is hiding the real story

At a national level, the market looks stable.

According to the latest HM Land Registry data, the average property in England sold for £290,000 in January 2026 - a +1.1% increase year-on-year.

That sounds reassuring.

But averages can be misleading.

Because when you dig deeper, a very different picture emerges…

A market split in two: North vs South

The biggest dividing line in today’s market is geography.

Higher mortgage rates have had a much stronger impact on more expensive areas — particularly London and the South.

Here’s how that plays out:

• Northern regions are still growing
• Southern regions are starting to decline

What’s happening regionally?

What this means for sellers:

• If you’re in the North or Midlands, demand is still pushing prices up.
• If you’re in London or the South, buyers have more power — and prices are softer.

Some areas are seeing sharp price drops

Zoom in even further, and the differences become even more dramatic. Certain local markets - especially in London — are seeing significant declines in achieved sale prices.

Areas with the biggest drops:

(Data derived from HMLR UK HPI local authority tables for January 2026)

These aren’t small fluctuations - they’re meaningful shifts.

What this means for sellers:

Your local market matters far more than the national average. Two homes in different postcodes can have completely different outcomes.

Property type matters more than ever

It’s not just where you live - it’s also what you’re selling.

Right now, buyers are clearly favouring houses over flats.

Annual price changes by property type:

(Data derived from HMLR UK HPI property type tables for England, January 2026)

Flats are the only property type losing value nationally.

Why?

• Higher service charges and leasehold concerns
• Less demand post-pandemic
• Buyers prioritising space and flexibility

What this means for sellers:

If you’re selling a flat, pricing strategy and agent choice are more critical than ever.

Yes - some sellers are taking a loss

Perhaps the most sobering trend is this:

A growing number of homeowners are selling for less than they originally paid.

• 8.7% of all sellers in England and Wales sold at a loss
• In London, that jumps to 14.8%
• In Tower Hamlets, a striking 28.2% of sellers lost money

And here’s the key detail:

👉 Flats account for 90% of loss-making sales in London

(Data derived from HMLR UK HPI property type tables for England, January 2026)

What this means for sellers:

If you bought recently - especially a flat in London - it’s essential to understand your true market position before listing.

So… are homes selling for less?

The real answer: it depends.

• Nationally → No (prices are slightly up)
• In many southern areas → Yes
• For flats → Very often, yes

This isn’t one market - it’s many micro-markets moving in different directions.

What should sellers do now?

In a market like this, strategy matters more than ever.

The difference between a strong sale and a disappointing one often comes down to:

• Accurate pricing from day one
• Choosing the right estate agent
• Understanding local demand (not national headlines)

The bottom line

The UK property market hasn’t crashed - but it has fractured.

If you’re selling:

• You can’t rely on national averages
• You need to understand your specific area and property type
• And you need a strategy tailored to today’s conditions

Because right now, two sellers can have completely different outcomes — even in the same city.