Nationwide: UK house price growth in October slowest in almost three years

Annual house price growth in the UK slowed to 0.5% in October, Nationwide Building Society has reported. In September it was 0.8%. According to the society, this is the weakest result since January 2024.

No change month on month

Compared with September, house prices were unchanged. The average UK property value in October was £273,566. Nationwide links the slowdown to caution among buyers, prompted by higher mortgage costs.

Robert Gardner, Nationwide's chief economist, tied the higher borrowing costs to expectations of interest rate rises, which in turn would stem from rising inflation. Gardner said market activity and the pace of price growth had slowed in recent months, partly because of an uncertain economic situation. He also pointed to geopolitical tensions, including the conflict in the Middle East, which are putting pressure on energy prices and fuelling inflation fears.

Differences between regions

Zoopla reports that, despite price falls in many places, the average cost of buying a home across Great Britain is still 0.8% higher than a year ago, at £273,100. Zoopla estimates that 85% of homes in London and the South East of England are in areas where prices are falling.

There are, however, places where property values are rising by more than 3% a year. This applies especially to the North West of England and Scotland. In some parts of Liverpool, Carlisle and Kilmarnock, growth exceeds 4% a year.

Average house prices according to Zoopla in September:

• London – £523,100,
• South East – £382,600,
• Eastern England – £337,300,
• South West – £309,600,
• West Midlands – £239,500,
• East Midlands – £233,400,
• Wales – £214,800,
• North West – £211,400,
• Northern Ireland – £200,800,
• Yorkshire and the Humber – £196,600,
• Scotland – £177,700,
• North East – £152,300.

What this means for you

For people planning to buy a home or remortgage, the key point is that, according to Nationwide, mortgage costs remain high and the market expects possible interest rate rises. The picture varies by region: prices are rising faster in the North West of England and Scotland, while many areas of London and the South East are seeing falls. It is worth talking to a mortgage adviser before making a decision.