Annual UK house price growth halves as mortgage rates rise – business live
Rolling coverage of the latest economic and financial news, as Nationwide reports house prices fell in September The average price of a terraced home is up 1.8% over last year – making it the strongest performing property type. Flats, though, saw much less demand- their prices are “essentially unchanged” compared with a year ago, according to Nationwide’s data. Continue reading...
Good morning, and welcome to our ongoing financial news coverage. According to lender Nationwide, annual house price growth in the UK has halved due to rising mortgage rates cooling the market. The latest gauge from Nationwide reveals that house prices decreased by 0.2% in September, bringing the yearly growth rate down to 0.8%, the weakest rate since December 2025.
This is lower than the 1.6% growth observed in August. Economists polled by Reuters had predicted prices would remain steady that month, with a year-on-year increase of 1.3%. The average home price across the country dropped to £274,251 that month. Nationwide's chief economist, Robert Gardner, stated that the slowdown is partly due to recent increases in mortgage rates from lenders.
"Market activity and house prices have remained subdued in recent months, in part reflecting the uncertain economic backdrop. Geopolitical tensions remain high, with the conflict in the Middle East continuing to impact markets."
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- UK house price growth halves amid rising mortgage interest rates theguardian.com
