Annual UK house price growth slowed to 0.5% in October, its weakest pace since January 2024, dragged down by economic uncertainty and rising mortgage rate expectations, according to Nationwide.

The Nationwide house price index (HPI) stood at 547.8, compared with 548.1 in September, representing a marginal monthly decline of 0% that is effectively unchanged. On an annual basis, house prices were 0.5% higher than a year ago, although this was slightly slower than the 0.8% annual growth recorded in September.

The average UK house price, on a non-seasonally adjusted basis, was £273,566 in October, down modestly from £274,251 in September.

In all, the latest figures show that UK house prices were broadly flat in October as the housing market continues to grapple with macroeconomic pressures, with Middle East tensions pushing up energy prices and fuelling inflation concerns.

Nationwide said expectations of bank rate increases had also maintained upward pressure on the market interest rates that underpin mortgage pricing, but foresees a market rebound once the energy shock passes.

Robert Gardner, Nationwide's chief economist, said: "October saw a further slowing in UK annual house price growth to 0.5%, from 0.8% in September. That is the weakest growth since January 2024. Prices were flat month on month, after taking account of seasonal factors.

“Forward-looking indicators suggest further softness in the near term. Surveyors report that new buyer enquiries remain weak. Moreover, consumer sentiment dipped noticeably in October, with households becoming less confident about the outlook for the general economy as well as their own financial situation in the year ahead.

“Once the energy shock fades, there are good reasons to believe the market will regain momentum. The broader economy has proven surprisingly resilient to date, with annual economic growth accelerating in recent quarters. Employment is holding up well, as are real incomes, while household balance sheets are solid, with debt levels still close to 20-year lows relative to household disposable income.

“Moreover, the improvement in housing affordability seen over the past two years has been only partially unwound as a result of higher market interest rates, as income growth has continued to outpace house price growth by a wide margin.”

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