According to market analyst TwentyCi house prices have already plunged by almost a fifth in some areas, with the biggest drop being in Southampton, where agreed sales prices nosedived from a peak of £463,000 in June to £383,350 last month.
Additionally, Jonathan Hopper, of buying agents Garrington Property Finders, said Southampton was facing a “mass exodus of landlords” which had increased the supply of properties on the market and driven prices down.
“The area has a lot of HMO [house in multiple occupation] properties and a lot of student accommodation, and there are a lot of people leaving the sector.
“There’s a lot of stock that has been put on the market that has a lot of equity gains in it, and whilst the prices are still quite a bit lower than where they were 12 months ago, they’re still sitting on a tidy profit and they want to get out,” he said.
Other big falls were recorded in the towns of Falkirk in Scotland, Dorchester in Dorset, and Telford in Shropshire, where prices were down 16pc.
In Dorchester, which has a population of only about 22,000 people, growing numbers of older homeowners are downsizing to release equity and move into more energy efficient properties, Mr Hopper said. The upper end of the market between £600,000 and £700,000 has taken a hit, while sales for entry-level properties are faring better, he added.
Other places recording big price slumps were Llandudno in Wales, Plymouth in Devon, and Kirkcaldy in Scotland.