UK house-price growth halves as mortgage costs weigh on buyers
Annual UK house-price growth slowed to 0.8 per cent in September, half August’s pace, while prices fell on the month. Higher mortgage costs and uncertainty continued to weigh on activity. Nationwide’s quarterly regional figures showed a wide gap between Northern Ireland, where prices still rose fastest, and East Anglia, where they declined.
Economics & Markets··Evening
Annual growth drops to 0.8 per cent
UK house-price growth halved to 0.8 per cent annually in September from 1.6 per cent in August. The index compiled by Nationwide, a British mortgage lender, recorded a seasonally adjusted monthly decline of 0.2 per cent.[1], [2]
The average home price was 274,251 pounds, without seasonal adjustment. The annual increase was the slowest since December 2025. In August, prices had risen 0.2 per cent on the month. Nationwide notes that monthly changes can be revised when seasonal adjustment factors are recalculated.[1]
Mortgage pricing remains under pressure
Nationwide chief economist Robert Gardner attributed subdued activity partly to uncertainty and higher market interest rates used in mortgage pricing. He pointed to the Middle East conflict, higher energy prices and expectations of increases in the Bank of England’s policy rate. He also said affordability had improved because home prices had grown more slowly than earnings, with higher mortgage rates partly offsetting those gains.[1]
Northern Ireland leads quarterly regional growth
In the third-quarter regional figures, covering the three months to September, Northern Ireland recorded annual growth of 5.9 per cent, down from 8.6 per cent in the previous quarter. East Anglia, in eastern England, recorded a 0.7 per cent decline. Eight of thirteen regions had annual growth below 1 per cent, including four with falling prices. These quarterly figures use a different period and average from the monthly release.[1]
