UK house price growth slows to 0.5% in October

Annual house price growth in the United Kingdom fell to 0.5% in October, marking its weakest pace since early 2024. According to Nationwide, the average house price stood at £273,566, showing no monthly change compared to September.

Economists attribute the slowdown to an uncertain economic environment and geopolitical tensions in the Middle East, which have fueled inflation concerns and upward pressure on energy prices. These factors have led to market expectations of interest rate increases, impacting mortgage pricing.

Mortgage costs have risen significantly, with five-year fixed rates approaching 6% for the first time in three years. While employment and real incomes remain resilient, helping to maintain some level of housing affordability, weak demand from homebuyers and rising financing costs suggest that house prices may face further declines in the short term.