This comes according to the latest nationwide house price index, which shows the typical UK property increased by just 0.8% in the year to September – half the 1.6% recorded in August.
This means that the average UK property price has fallen to £274,251.
The data comes after mortgage approvals were reported to fall over the summer in response to rising mortgage rates.
The 0.8% annual growth is the weakest since December 2025, said Robert Gardner, chief economist at Nationwide.
“Market activity and house prices have remained weak in recent months, partly reflecting the uncertain economic backdrop,” he said.
“Geopolitical tensions remain high, with conflict in the Middle East putting upward pressure on energy prices, adding to inflation concerns. This in turn has heightened financial market expectations of bank interest rate increases, keeping upward pressure on market interest rates supporting mortgage pricing.”
Nationwide reported that most regions saw a slowdown in house price growth in the three months to September (Q3-Q3). Of the 13 UK regions, eight saw annual growth of less than 1%.
Northern Ireland, North West England, Scotland, North England and Yorkshire and the Humber were the regions that saw annual price growth of more than 1%.
Northern Ireland was the strongest with a growth rate of 5.9%, but this is still well below the 8.6% recorded in the second quarter.
In southern England, prices fell by 0.1% year-on-year. London was the only southern region to record an annual increase in prices of a modest 0.4%. East Anglia was the weakest performing region in the UK, with prices falling by 0.7% year-on-year.
Real estate agent Amy Reynolds, head of sales at Richmond-based Anthony Roberts, said the nationwide numbers were not surprising. “We expect September and October to be quieter than usual for new inventories as people wait and see before the Budget,” she explained.
“However, stamp duty is unlikely to change on 28 October, so there is little to be gained by deferring, and every week you procrastinate is another week for the series to fluctuate. We always advise exchanging when your papers are ready, not when the adviser is sitting down.”
“Lenders did not wait for the Bank of England to move interest rates, as mortgage rates rose.
“With inflation remaining above target, we expect interest rates to hold rather than fall this side of Christmas. This is not a crisis, but it means buyers waiting for a cheaper mortgage to save their budget may be waiting a long time.”
“Overall, we are hopeful of a rebound following the Budget and a busy December which sets us up well for 2027.”
