More than a third of homes in the UK are estimated to be in postcode areas where property values have fallen over the past year, according to Zoopla.

The proportion (35%) has increased from 12% a year ago, the property website said.

Price falls were found to be concentrated in London and the South East of England.

Higher mortgage rates have increased the cost of buying, with buyers also being more selective, with the number of homes for sale 7% higher than last year, giving buyers more choice and room to negotiate, Zoopla said.

This is also putting pressure on sellers to price their properties competitively, to attract buyer interest, it added.

Despite a significant number of postcode areas seeing house price falls, the average house price across the UK is still 0.8% higher than a year earlier, at £273,100, Zoopla said.

At a more localised level, 85% of homes in London and the South East were estimated by Zoopla to be in postcode areas with price falls.

There are still areas where home values are…