UK House Prices Post Slowest Annual Growth in Two Years, Nationwide Says

UK house prices grew at their slowest pace in two years in October as rising mortgage rates weighed on the market, according to Nationwide. The average price of a property stood at £273,566 in October, flat on the previous month, the lender said.

The figures point to a marked cooling in momentum after a period of firmer growth, with the annual rate of increase easing to its weakest level in two years. Nationwide attributed the slowdown to higher mortgage rates, which have raised borrowing costs for prospective buyers and dampened demand.

The flat monthly reading marks a pause in price growth, suggesting buyers are becoming more sensitive to affordability constraints as financing costs climb. The average price of £273,566 was unchanged from September, underscoring the loss of upward momentum in the market.

The data adds to evidence that the UK housing market is losing steam as higher borrowing costs feed through to household budgets. Mortgage rates have risen, squeezing affordability for buyers and limiting the pace at which prices can continue to climb.

For investors, the figures signal a more subdued outlook for the UK property market, with the slowdown in price growth reflecting the pressure that elevated mortgage rates are placing on demand. The two-year low in annual growth highlights how sensitive the market has become to changes in financing costs, and suggests that the trajectory of mortgage rates will remain the key variable for house prices in the months ahead.