What the figures show

House price growth in the UK slowed sharply in October, with annual growth easing to 0.5%, according to figures published by Nationwide Building Society on Friday 30 October 2026. The average price of a home stood at £273,566. That annual rate was down from 0.8% in September and was the slowest recorded since January 2024.

On a monthly basis, prices were unchanged in October once seasonal factors were taken into account, after a fall of 0.3% in September. The unadjusted average price fell from £274,251 in September to £273,566 in October, a difference of £685. Nationwide's chief economist, Robert Gardner, said October's annual growth was the weakest since January 2024. He linked the slowdown to rising mortgage costs, driven by expectations of higher interest rates, and to wider uncertainty that has left many prospective buyers waiting before they commit.

Why buyers are holding back

Mortgage pricing has moved higher even though the Bank of England base rate has been held at 3.75% since December. Reports on Friday put the average five-year fixed mortgage rate close to 6%, with two-year rates close behind. Market expectations of further rate rises, partly linked to inflation pressure from higher energy prices, have pushed up the funding costs that shape fixed-rate deals. Surveyors reported that new buyer enquiries remained weak, a further sign that affordability pressures are weighing on demand.

What to watch next

Attention now turns to the Bank of England's Monetary Policy Committee meeting next week, when traders will look for any signal on the direction of interest rates. Separate figures published on Friday showed residential property transactions 4% lower in September than a year earlier. For now, the October data describe a market that has stalled rather than fallen sharply, with sellers and buyers both waiting for clearer signals on borrowing costs.

Sources: PropertyWire | Sharecast