UK house price growth halves amid rising mortgage interest rates
Prices fell by 0.2% month on month in September as average price of a home slipped to £274,251, says Nationwide Business live – latest updates Annual house price growth halved in the UK last month, as economic uncertainty sparked by conflict in the Middle East continued to deter homebuyers. The average price of a British home rose 0.8% in the year to September to £274,251, according to Nationwide…
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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