Annual growth in UK house prices fell by half in September, dropping to 2.6%, as higher mortgage costs continue to weigh on the housing market. The slowdown was reported by Nationwide on Thursday, highlighting the impact of persistent borrowing costs on buyer demand.
The annual rate declined from 5.2% the previous month, marking the sharpest decrease in nearly two years. While monthly prices rose by 0.4%, the gains were modest compared to historical averages for the season. The data suggests that affordability constraints are increasingly limiting the pool of potential buyers.
Mortgage lenders have maintained elevated interest rates throughout 2026, with many five-year fixed deals hovering above 5%. This has reduced purchasing power for prospective homeowners and dampened transaction volumes across the country.
Regional variations were noted in the report, with London and the South East experiencing slower growth compared to other parts of the UK. Analysts warn that unless inflation continues to ease and the Bank of England cuts rates, the housing market may remain subdued through the remainder of the year.
0.4% monthly rise still feels good if you own, terrible if you’re renting and waiting to buy.
My five-year fix is finally up for renewal. Brace yourselves, everyone!
London slowing down makes sense, but will it ever recover? Seems stuck for years.
Is it really a crash or just a healthy correction after years of crazy spikes?
Double the rate, half the growth. The math is brutal for first-time buyers right now.