UK house prices in September rose 0.8% compared with the same month a year earlier, the slowest annual pace since December 2025, and fell unexpectedly month-on-month, according to data published on the first of the month by Nationwide Building Society, the major UK mortgage lender. The annual increase was half the 1.6% recorded in August and also fell short of the 1.3% rise forecast by economists in a Reuters poll. On the month, prices fell 0.2%, while the market had expected them to be flat. Nationwide chief economist Robert Gardner said market transaction activity and house prices have been subdued in recent months, partly reflecting an uncertain economic environment, and noted that geopolitical tensions remain high, with conflict in the Middle East pushing up energy prices and stoking inflation concerns. He said that while there are signs that higher energy prices have not fed through into underlying inflationary pressures, investors' expectations that the Bank of England will raise interest rates continue to put upward pressure on mortgage rates.
Nationwide Building SocietyNationwide's own data shows UK house prices rose only 0.8% y/y, the slowest since Dec 2025, and fell 0.2% m/m, signaling subdued housing demand.
