UK house prices were unchanged in October as annual growth cooled to 0.5%, Nationwide data showed, extending a slowdown that provides a fresh measure of demand amid rising mortgage costs.
The seasonally adjusted index was flat month over month. Nationwide’s average property price, which is not seasonally adjusted, stood at £273,566. Annual growth eased from 0.8% in September and was the weakest since January 2024, the lender said.
Nationwide Chief Economist Robert Gardner said uncertainty had restrained market activity. He linked mortgage pricing pressure to expectations of further Bank Rate increases, which rose as the conflict in the Middle East pushed up energy prices and heightened inflation concerns.
The Guardian reported that rising mortgage rates had discouraged some potential buyers. The official UK House Price Index recorded a 0.9% annual increase through August; the Office for National Statistics (ONS) and Land & Property Services calculate the measure, as covered in earlier EconoTimes reporting on UK house prices and rents.
Policymakers at the Bank of England are due to announce their next rate decision Nov. 5.
