UK house price growth slows to weakest since January 2024
House price growth in the UK slowed to its weakest pace in nearly three years in October, as rising mortgage costs made buyers more cautious.
Nationwide Building Society said UK property values grew by 0.5% in October compared with a year earlier, down from 0.8% in September. That was the slowest annual growth since January 2024.
Prices were unchanged from September on a month-on-month basis, after a downwardly revised fall of 0.3% the previous month. The average UK property stood at £273,566 in October, down slightly from £274,251 in September.
Nationwide’s chief economist, Robert Gardner, said market activity and house price growth had slowed in recent months, in part because of the uncertain economic backdrop. He pointed to high geopolitical tensions, with the conflict in the Middle East pushing up energy prices and feeding concerns about inflation.
That, he said, had led financial markets to expect increases in the Bank of England’s Bank Rate, which in turn kept upward pressure on the market interest rates behind mortgage pricing.
Why it matters
The figures show a housing market losing momentum even before the effects of this week’s Budget are felt. For buyers, higher mortgage costs mean larger monthly payments and less room to stretch budgets. For sellers, flat prices mean homes are taking longer to sell and offers are coming in more cautiously.
The slowdown also matters for the wider economy. Housing transactions feed into spending on furniture, renovations and moving services, and weaker activity there can drag on growth. Separate figures from HM Revenue & Customs showed residential sales transactions were 4% lower in September than a year earlier, at 94,800.
What happens next
Most economists now expect the Bank of England to raise its Bank Rate for the first time in three years next week, to 4% from 3.75%, according to Reuters. If that happens, mortgage costs could rise further before they ease.
Gardner said forward-looking indicators pointed to further softness in the near term, with surveyors reporting weak new buyer inquiries and consumer confidence dipping noticeably in October. Analysts at Pantheon Macroeconomics said a fall in prices in November was a good bet.
Even so, Gardner said there were good reasons to believe the market would regain momentum once the energy price shock faded.
Sources
- https://www.nationwide.co.uk/media/hpi/download/oct-2026 (Nationwide, 30 October 2026)
- https://www.hl.co.uk/news/uk-house-price-growth-slows-to-lowest-since-january-2024 (Reuters via Hargreaves Lansdown, 30 October 2026)
- https://www.theoldhamtimes.co.uk/news/national/26683342.annual-house-price-growth-slows-weakest-since-january-2024/ (PA Media via The Oldham Times, 30 October 2026)
This article is for general information and education only. It is not legal or financial advice.
