# UK housing market growth deceleration

> Developing situation record from CLSTR: https://clstr.news/situations/uk-housing-market-growth-deceleration
> Updated: 2026-10-31T10:38:55.000Z. Sources: 2. Developments: 2.

The United Kingdom housing market has experienced a continuous slowdown in annual house price growth through late 2026. In August, growth decelerated to 0.9%, down from 1.2% in July. Regional performance during this period was varied, with Northern Ireland seeing 9.2% growth while London experienced a 2.2% decline.

By October, annual growth slowed further to 0.5%, marking the weakest pace since early 2024. Analysts attribute this trend to several factors, including increased stock levels, affordability pressures, and rising mortgage costs. Specifically, five-year fixed mortgage rates have approached 6% for the first time in three years. 

Economic uncertainty and geopolitical tensions in the Middle East have also contributed to inflation concerns and upward pressure on energy prices, influencing market expectations regarding interest rate increases.

## Timeline

### 2026-10-31: UK house price growth slows to 0.5% in October

UK annual house price growth slowed to 0.5% in October, the lowest rate in over two years, as rising mortgage costs and geopolitical tensions dampen buyer demand.

2 sources. https://clstr.news/cluster/uk-house-price-growth-slows-to-05-in-october

### 2026-10-21: UK house price growth slows for fourth consecutive month

UK annual house price growth slowed to 0.9% in August, the fourth straight monthly decline. While Northern Ireland saw 9.2% growth, London prices fell by 2.2%, driven by a 5.0% drop in flat values.

3 sources. https://clstr.news/cluster/uk-house-price-growth-slows-for-fourth-consecutive-month

---
Cite as: UK housing market growth deceleration. CLSTR, https://clstr.news/situations/uk-housing-market-growth-deceleration