Annual house price growth across the UK has halved, with prices falling by 0.2% in September, according to lender Nationwide. This brings the annual growth rate down to 0.8%, marking the weakest rate since December 2025.
The average price of a home nationwide slipped to £274,251 last month. This slowdown was weaker than economists polled by Reuters had anticipated, who had forecast no monthly growth and a 1.3% year-on-year increase.
Robert Gardner, Nationwide’s chief economist, attributed the slowdown to recent increases in mortgage rates. Moneyfacts reported yesterday that the average two-year fixed residential mortgage rate is at its highest since July 2024, while the average five-year rate is at its highest since 10 October 2023, with both rates above 5.9%.
Regionally, Northern Ireland saw the fastest price growth, with a 5.9% year-on-year increase. East Anglia was the weakest performing region, experiencing an annual decline of 0.7%.