Nationwide reports UK house price growth slows to 0.5% in October

Nationwide said October house price growth slowed to 0.5% year‑on‑year, with average price at £273,566 and mortgage costs rising on expectations of higher rates.

By Felo News Desk · Published Fri, 30 Oct 2026 08:57:58 GMT

Nationwide Building Society reported that annual UK house price growth slowed to 0.5% in October, the weakest pace since January 2024, according to its index.

What happened

The index showed a drop from 0.8% growth in September to 0.5% in October. Month‑on‑month prices were unchanged, leaving the average UK property value at £273,566 for the month.

What the reports add

Both Standard and Independent reproduced Nationwide’s figures and added context about borrower caution, rising mortgage costs and broader economic sentiment. Standard noted the slowdown comes as “mortgage costs have increased because of expectations of upcoming interest rate rises as policymakers look to cool rising inflation caused by the Iran war.” Independent echoed this and added that “consumer sentiment dipped noticeably in October, with households becoming less confident about the outlook for the general economy as well as their own financial situation in the year ahead.” Both outlets reported surveyors’ observations that new buyer inquiries remain weak.

What was said

“Market activity and house price growth have slowed in recent months, in part reflecting the uncertain economic backdrop,” Robert Gardner, Nationwide’s chief economist, told Standard.

“Geopolitical tensions remain high, with the conflict in the Middle East exerting upward pressure on energy prices, fanning inflation concerns,” Gardner added, as quoted by Independent.

“This in turn has led to mounting financial market expectations of bank rate increases, which have maintained upward pressure on the market interest rates which underpin mortgage pricing,” Gardner said to both outlets.

“Forward‑looking indicators suggest further softness in the near term,” Gardner told Standard, noting that “surveyors report that new buyer inquiries remain weak.”

“Once the energy shock fades, there are good reasons to believe the market will regain momentum,” Gardner concluded, as reported by Independent.

How it came about

The October data follow a series of cooling signals: ONS reported annual growth of 0.9% in August with an average house price of £273,000; Lloyds’ index showed zero year‑on‑year growth in September and an average price of £298,441, while five‑year fixed mortgage rates hit 6%. The latest slowdown aligns with heightened mortgage costs and inflation pressures linked to the Iran war.

Felo previously covered the August slowdown (uk-house-price-growth-august-2026) and the September zero‑growth data (uk-house-prices-september-2026-zero-growth), providing a recent trend line for readers.

Key facts

Annual UK house price growth slowed to 0.5% in October 2026 (standard.co.uk)
Month‑on‑month prices were unchanged in October 2026 (standard.co.uk)
Average UK property price was £273,566 in October 2026 (standard.co.uk)
Robert Gardner is chief economist at Nationwide Building Society (standard.co.uk)
Nationwide attributes the slowdown to rising mortgage costs and Middle East geopolitical tensions (standard.co.uk)