This is 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.
It means the average UK property price has fallen to £274,251.
The data comes as it was reported mortgage approvals had fallen over the summer in response to rising mortgage rates.
Robert Gardner, Nationwide’s chief economist, said the 0.8% annual growth was the weakest since December 2025.
“Market activity and house prices have remained subdued in recent months, in part reflecting the uncertain economic backdrop,” he said.
“Geopolitical tensions remain high, with the conflict in the Middle East exerting upward pressure on energy prices, fanning inflation concerns. This in turn has led to mounting financial market expectations of Bank Rate increases, which has maintained upward pressure on the market interest rates which underpin mortgage pricing.”
Nationwide reported most regions had experienced a slowdown in house price growth over the three months to September (Quarter 3 – Q3). Of the 13 regions of the UK, eight saw annual growth less than 1%.
Northern Ireland, the North West of England, Scotland, The North of England and Yorkshire and Humber were the areas which saw annual price growth above 1%.
Northern Ireland was the strongest with growth of 5.9% – but this was still down a great deal on the 8.6% recorded in Q2.
In Southern England prices were down 0.1% year on year. London was the only southern region to record an annual price rise, a modest 0.4%. East Anglia was the weakest performing UK region, with prices down 0.7% year on year.
Estate agent, Amy Reynolds, head of sales at Richmond-based Antony Roberts, said the Nationwide figures were not surprising. “We expect a quieter-than-usual September and October for new stock as people ‘wait and see’ ahead of the Budget,” she explained.
“However, stamp duty isn’t likely to change on 28 October, so there’s little to be gained by holding off, and every week you stall is another week for a chain to wobble. We would always advise to exchange when your paperwork is ready, not when the Chancellor sits down.
“Lenders haven’t waited for the Bank of England to move interest rates, with mortgage pricing edging upwards.
“With inflation sitting above target, we expect rates to hold rather than fall this side of Christmas. That isn’t a crisis, but it does mean buyers waiting for a cheaper mortgage to rescue their budget could be waiting a long time.
“Overall, we’re hoping for a post-Budget bounce and a busy December setting us up well for 2027.”
