UK House Prices October 2026: Growth Slows to 0.5%, Weakest Since January 2024

UK house price growth slowed to 0.5% in the year to October 2026, Nationwide Building Society reported on 30 October 2026. That is the weakest annual pace since January 2024, and it leaves the average UK home at £273,566.

Prices were unchanged month on month in October after seasonal adjustment, following a downwardly revised 0.3% fall in September. The flat monthly reading sits alongside a lower cash average than in September, because the £273,566 average is not seasonally adjusted and the two measures are not directly interchangeable.

Nationwide October 2026 — Key figures

What Nationwide’s chief economist said about the slowdown

Nationwide chief economist Robert Gardner said October saw a further slowing in UK annual house price growth to 0.5%, from 0.8% in September, and called it the weakest growth since January 2024. He said market activity and house price growth had slowed in recent months, in part reflecting the uncertain economic backdrop. See the Nationwide October House Price Index for the source data.

Gardner pointed to pressure from energy prices and expectations that borrowing costs could rise. That combination has weighed on buyer confidence even though the wider economy has shown resilience in parts of 2026.

Why buyers are holding back as borrowing costs stay high

Weaker buyer enquiries and higher mortgage costs are central to the slowdown. Lenders price fixed-rate deals off market expectations rather than Bank Rate alone, so a widely expected rate rise can push mortgage pricing up before any decision is announced. See also the Bank of England interest rate decision coverage.

As of the morning of 2 November 2026, Moneyfactscompare listed the lowest widely available two-year fixed rate at 4.90% and the lowest five-year fixed rate at 4.91%. Those are the cheapest deals on the market, not the average rate paid by borrowers, so most households remortgaging will face higher quotes.

What the wider housing data shows alongside Nationwide

Separate HM Revenue & Customs figures reported alongside the index showed residential sales transactions at 94,800 in September, 4% lower than a year earlier. That softer transaction count fits a market where fewer buyers are proceeding, even if prices themselves have not fallen sharply. Read how annual house price growth slows to its weakest since January 2024.

Pantheon Macroeconomics was quoted as saying that house prices holding unchanged in October was a decent result given the market pressures. The Bank of England announces its next decision on Thursday 5 November 2026, when a rise from 3.75% to 4.0% is widely expected but has not been decided. See also the site’s UK manufacturing output coverage.

How to read Nationwide’s numbers without overstating them

Nationwide’s index is drawn from its own house-purchase mortgage lending at the post-survey approvals stage. It is therefore a lender-based measure, not a census of every UK property transaction, and other indices can tell a slightly different story. Readers should also keep the seasonal-adjustment distinction in mind: the flat monthly figure is seasonally adjusted, while the £273,566 average is not.

Gardner has also argued that the fundamentals remain in place for a recovery once conditions stabilise. That is a judgement about the outlook, not a forecast with a date attached, and it should not be read as a promise that prices will rise in November.

Questions buyers and sellers are asking now

Did UK house prices fall in October 2026?

No, on Nationwide’s measure they were flat month on month after seasonal adjustment, while annual growth slowed to 0.5%. A slower rate of growth is not the same as a fall in prices.

What is the average UK house price now?

£273,566 on Nationwide’s October 2026 measure, down from £274,251 in September. That average is not seasonally adjusted.

Why are mortgage rates high if Bank Rate has not moved?

Fixed rates follow market expectations for future Bank Rate, not just the current rate. Expectations of a rise on 5 November 2026 have already fed into pricing.

Will the Bank of England raise rates on 5 November 2026?

A rise from 3.75% to 4.0% is widely expected, but it is not decided yet. The decision itself is not publicly verified until it is announced.

Does Nationwide cover every UK house sale?

No. Its index uses Nationwide mortgage approvals, so it reflects that lending book rather than the whole market.

A common misunderstanding is that a 0.5% annual rise means homes are getting cheaper. On this index they are still, on average, slightly more expensive than a year earlier — they are simply rising far more slowly than in August, when annual growth was 1.6%.