UK house prices fall 0.2% as annual growth halves

UK house prices fell 0.2% in September, reversing the previous month’s 0.2% increase, while annual growth slowed to 0.8% from 1.6% in August, according to Nationwide’s house-price index. The average price was £274,251, and the annual growth rate was the weakest since December 2025. The figures show a loss of momentum in the market, though they do not establish what caused the monthly decline. Nationwide chief economist Robert Gardner said activity and prices had remained subdued amid economic uncertainty. He linked pressure on mortgage pricing to higher energy costs and inflation concerns, which have contributed to market expectations of Bank Rate increases. Gardner also said underlying affordability had improved because house prices had risen more slowly than earnings, but higher mortgage rates had partly offset that improvement. He said activity could regain momentum if the energy shock fades, confidence returns and market interest rates fall. Those are conditional possibilities, rather than a confirmed forecast of a recovery. Nationwide’s third-quarter regional figures showed Northern Ireland had the strongest annual price growth, at 5.9%, down from 8.