Falcon Terrace dates from 1865 and was originally a much longer road.
Falcon Place and Hope Cottages, which once were along its length, were abolished in 1885.
The local area redeveloped around 1959 as the Falcon Terrace Estate. The western section of Falcon Terrace was redeveloped as a path alongside a new open space and the eastern part as a new section of Fownes Street.