UK house price growth halved in September, reaching its weakest level since December 2025, as reported by Nationwide. Annual growth slowed to 0.8%, a decrease from 1.6% in August.
The latest House Price Index from Nationwide also shows that prices fell by 0.2% month-on-month, reversing an increase seen in August. The average UK property price is now £274,251, down from £275,465 in the previous month.
This slowdown comes amid continued pressure from higher mortgage rates, inflation concerns, and broader economic uncertainty. Robert Gardner, Nationwide’s chief economist, noted that market activity and house prices have remained subdued due to the uncertain economic backdrop.
Regional figures for the third quarter highlight a divide between northern and southern housing markets. Northern Ireland recorded the strongest annual growth at 5.9%, while Southern England saw a 0.1% annual decline. London was the only southern region to register an increase, with prices rising by 0.4%.
Flats continue to underperform compared to houses, with average flat prices virtually unchanged from a year earlier. Terraced houses recorded the strongest annual growth in the third quarter, at 1.8%.