UK House Price Growth Slows to 0.8% Amid Economic Uncertainty

The UK house price growth has slowed down significantly in September, according to Nationwide Building Society. The annual rate of growth halved to 0.8% from 1.6% in August, making it the weakest rate of growth since December 2025.

Nationwide's chief economist, Robert Gardner, said that market activity and house prices have remained subdued in recent months due to the uncertain economic backdrop. The conflict in the Middle East has led to increased energy prices, which is fueling inflation concerns and prompting expectations of interest rate hikes by the Bank of England.

Gardner noted that underlying housing affordability is improving as house price growth has been below earnings growth for some time. However, higher mortgage rates have partially offset these gains. If market interest rates fall back to pre-conflict levels, he expects activity to regain momentum in the coming quarters.