UK annual house price growth slowed to 0.5% in October 2026, the weakest pace since January 2024, according to Nationwide's latest House Price Index, released on 30 October.

The figure is down from 0.8% in September. Prices were unchanged month on month after seasonal adjustment, following a revised fall of 0.3% in September. The average UK house price, before seasonal adjustment, stood at £273,566 in October, compared with £274,251 the previous month, while Nationwide's monthly index eased from 548.1 to 547.8.

Why growth has cooled

Nationwide chief economist Robert Gardner said market activity and house price growth had slowed in recent months, in part reflecting the uncertain economic backdrop. The lender pointed to weaker buyer enquiries, pressure from energy prices and expectations that borrowing costs could rise further, all of which have weighed on demand through the autumn.

Separate figures underlined the softer market: Bank of England data showed mortgage approvals for house purchases fell in September to their lowest level since December 2023, while HM Revenue and Customs reported residential transactions 4% lower than a year earlier, at 94,800.

What it means for buyers and sellers

October's reading was slightly stronger than economists surveyed by Reuters had expected, with forecasts pointing to a 0.1% monthly fall and annual growth of 0.6%. Analysts at Pantheon Macroeconomics described prices holding flat as a decent result given high energy prices and expectations of further Bank Rate rises.

Nationwide's index is based on its own mortgage approvals at the post-survey stage, so it is a measure of mortgaged purchases rather than every UK property transaction. The lender's earlier outlook for 2026 had envisaged annual growth of 2% to 4%, a range October's 0.5% sits well below, with the full-year figure still to be determined.