Annual house price growth slowed to 0.5% in October, down from 0.8% in September, according to Nationwide.

Nationwide’s latest House Price Index shows the housing market has lost momentum amid economic uncertainty and higher mortgage rates. The annual growth rate in October was the weakest since January 2024 at 0.5%. However, Prices were unchanged month on month after seasonal adjustment.

Nationwide says prices were flat month on month, following a 0.3% fall in September. The average UK house price in October was £273,566, down from £274,251 the previous month.

Economic uncertainty

Nationwide’s Chief Economist, Robert Gardner, says market activity and house price growth had slowed in recent months. He pointed to ‘uncertainty’ over the current economic outlook, including geopolitical tensions and the effect of the conflict in the Middle East on energy prices and inflation. Gardner told Mortgage Introducer that the figures reflected a market under external pressure, but that it should recover when conditions stabilised.

MB Associates’ Sales & Operations Director, Les Pick, says: ‘The latest Nationwide figures reflect what many of us in the mortgage industry are experiencing first-hand. Consumer confidence remains fragile, with economic uncertainty and higher mortgage rates understandably causing some buyers to delay their decisions.

‘However, it is important to recognise that a slowdown in house price growth does not necessarily signal a weakening housing market,’ adds Les. ‘Prices remain broadly stable, and for prospective purchasers, particularly first-time buyers, a less competitive market can create opportunities to negotiate and secure a suitable property. Approximately 83% of properties are selling below asking price and many of those are selling at a point that would be considered to be “great value”.’

Predictions of a possible base rate increase during the next review on 5 November have also put pressure on the market interest rates that influence mortgage pricing.

The outlook may remain subdued in the short term. Surveyors report that new buyer enquiries are still weak, while consumer confidence fell in October. Households were less optimistic about both the wider economy and their own finances over the coming year.

Longer-term optimism

Gardner says there are reasons to expect the market to regain momentum. The economy has shown resilience, while employment and real incomes have held up.

Household finances also remain relatively strong, with debt levels near a 20-year low relative to disposable income. Affordability has improved over the past two years, as incomes have risen considerably faster than house prices. That said, higher market interest rates have partly reversed that improvement.

‘Affordability still remains a challenge, especially following recent increases in mortgage pricing, but lenders continue to offer a wide range of products and innovative solutions to support borrowers,’ says Les.

‘At MB Associates, we believe the fundamentals of the housing market remain relatively resilient. While we anticipate some continued uncertainty in the short term, there are reasons for cautious optimism as economic conditions stabilise.

Les concludes: For buyers, the key is to seek professional mortgage advice early, understand their borrowing options, and be prepared to act when the right opportunity arises. Get yourself “mortgage ready” and then negotiate hard; it’s a buyers’ market right now.

We will keep you updated on future base rate reviews and mortgage rates. If you have any questions about mortgage rates, we’re here to help.