House Price Growth Slows to Decade-Low Amid Geopolitical Uncertainty
The annual rate of growth in UK house prices has slowed to its lowest level since December last year, according to Nationwide Building Society. The average price of a property fell by 0.2% month-on-month in September, with the annual growth rate dropping from 1.6% in August to 0.8%. Robert Gardner, Nationwide's chief economist, said this is the weakest rate of growth since December 2025.
The average house price across the UK was £274,251 in September. Mr. Gardner attributed the decline in house prices to a combination of factors, including geopolitical tensions and rising energy prices, which have led to increased expectations of Bank of England base rate increases.
He also noted that underlying housing affordability is improving, as house price growth has been below earnings growth for some time. However, this gain has been partially offset by higher mortgage rates.
Nationwide's latest figures suggest that the UK housing market remains finely balanced, with buyer choice leading to strong competition among sellers. Market experts are calling for a clearer economic backdrop and better understanding of policy changes before buyers and sellers take action.