UK House Price Growth Halves to 0.8% in September

UK annual house price growth halved to 0.8% in September 2026, down from 1.6% in August, according to Nationwide’s latest house price data.

House prices declined 0.2% month on month in September after seasonal effects were taken into account. The average UK house price stood at £274,251, compared with £275,465 in August.

The September annual growth rate was the weakest since December 2025, highlighting continued weakness in UK housing market activity amid an uncertain economic backdrop.

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UK House Price Growth Slows Further in September

The latest figures show a clear slowdown in annual house price growth compared with August.

Indicator	September 2026	August 2026
Monthly Index	548.3	549.6
Monthly Change	-0.2%	+0.2%
Annual Change	+0.8%	+1.6%
Average Price	£274,251	£275,465

The monthly percentage changes are seasonally adjusted, while the average prices are not seasonally adjusted.

According to Nationwide Chief Economist Robert Gardner, subdued market activity and house prices in recent months have partly reflected uncertainty surrounding the economic outlook.

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Most UK Regions See Slower House Price Growth

Regional performance remained uneven in the third quarter, with northern parts of the UK generally recording stronger annual growth than southern regions.

Northern Ireland remained the strongest-performing region, with average prices of £227,922 and annual growth of 5.9% in Q3 2026.

At the other end of the spectrum, East Anglia was the weakest-performing UK region, with average prices of £272,119 and an annual decline of 0.7%.

The North West also continued to record relatively strong performance, with prices rising 3.9% year on year, unchanged from the previous quarter.

UK Regional House Price Performance in Q3 2026

Region	Average Price	Annual Change	Annual Change in Previous Quarter
Northern Ireland	£227,922	+5.9%	+8.6%
North West	£231,360	+3.9%	+3.9%
Scotland	£196,215	+3.3%	+3.5%
North	£174,731	+3.3%	+3.9%
Yorkshire & The Humber	£217,029	+1.2%	+2.9%
Wales	£214,816	+0.7%	+3.5%
West Midlands	£252,355	+0.6%	+3.2%
London	£529,720	+0.4%	+1.6%
Outer South East	£337,137	0.0%	+0.1%
Outer Metropolitan	£427,430	-0.2%	+0.3%
South West	£305,180	-0.3%	+0.7%
East Midlands	£237,449	-0.5%	+1.8%
East Anglia	£272,119	-0.7%	+0.3%

Eight of the 13 regions recorded annual growth below 1% in Q3, with four regions recording small annual declines.

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Northern and Southern England Show Different Trends

England recorded annual house price growth of 0.5% in Q3.

Northern England, comprising the North, North West, Yorkshire & The Humber, East Midlands and West Midlands, recorded average annual price growth of 1.6%.

The North West remained the strongest-performing region in England, with prices 3.9% higher than a year earlier.

Southern England, comprising the South West, Outer South East, Outer Metropolitan, London and East Anglia, recorded an annual decline of 0.1%.

London was the only southern region to record annual price growth, although the increase was modest at 0.4%. Outer Metropolitan prices fell 0.2%, while East Anglia recorded a 0.7% annual decline.

House Price Growth Slows Across All Property Types

Nationwide’s latest data showed that annual house price growth slowed across all property types during Q3.

Terraced properties were the strongest-performing category, with prices rising 1.8% compared with a year earlier.

Flats remained the weakest-performing property type, with prices essentially unchanged from a year earlier.

The longer-term performance of flats has also been weaker than that of other property types. Since the beginning of 2020, the price of a typical flat has increased by 14%, compared with a 31% increase for semi-detached properties.

Nationwide attributed part of this difference to regional trends, noting that London has a much higher proportion of flats and has underperformed the wider UK housing market.

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Higher Mortgage Rates Continue to Weigh on the Housing Market

Nationwide said housing market activity has remained subdued partly because of the uncertain economic environment.

Higher energy prices and renewed inflation concerns have also affected financial-market expectations around the Bank Rate, keeping upward pressure on market interest rates that influence mortgage pricing.

At the same time, there have been signs that higher energy costs have not yet translated fully into underlying price pressures. Private-sector wage growth has remained relatively modest, which could give policymakers more room to assess how much additional monetary tightening may be required.

The housing market is therefore being influenced by two opposing forces: weaker house price growth has improved underlying affordability relative to earnings, while higher mortgage rates continue to offset some of those gains.

UK Housing Market and Bank of England Rate Expectations

The housing data come against a backdrop of heightened uncertainty over UK inflation and monetary policy.

The Bank of England kept Bank Rate at 3.75% at its September meeting, with the Monetary Policy Committee voting 6–3 to maintain the rate and three members supporting a 25-basis-point increase. The Bank also said higher energy prices associated with the Middle East conflict had increased inflation risks.

The latest housing figures therefore need to be considered alongside inflation, wage growth, energy prices and broader economic activity rather than viewed in isolation.

The Bank of England’s September Agents’ summary also reported that the residential property market had softened further, with subdued activity and higher mortgage rates weighing on demand.

UK House Price Fact File – Q3 2026

Indicator	Q3 2026
Average UK House Price	£276,157
Annual Change	+1.2%
Quarterly Change	-0.4%
Most Expensive Region	London
Least Expensive Region	North
Strongest Annual Change	Northern Ireland
Weakest Annual Change	East Anglia

The quarterly figures cover the three months to September and therefore differ from the monthly September house price statistics.

UK Nations House Price Performance

Nation	Average Price	Annual Change	Quarterly Change
Northern Ireland	£227,922	+5.9%	+0.5%
Scotland	£196,215	+3.3%	+0.2%
Wales	£214,816	+0.7%	-1.4%
England	£311,428	+0.5%	-0.7%

Northern Ireland remained the strongest-performing nation, while England recorded the weakest annual growth among the four nations listed.

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Key Takeaways From the September UK House Price Data

• UK annual house price growth slowed to 0.8% in September from 1.6% in August.
• Prices fell 0.2% month on month on a seasonally adjusted basis.
• The average monthly UK house price was £274,251.
• Northern Ireland recorded the strongest regional annual growth at 5.9% in Q3.
• East Anglia recorded the weakest regional performance, with prices down 0.7% year on year.
• Terraced properties recorded the strongest annual growth among property types at 1.8%.
• Flats were broadly unchanged compared with a year earlier.
• The average UK house price for Q3 was £276,157, with annual growth of 1.2%.

Market Impact

The slowdown in UK house price growth adds to evidence of a subdued housing market, which can weigh on expectations for domestic demand and construction activity. For GBP, the immediate impact is likely to be secondary to inflation, employment, GDP and Bank of England policy signals; notably, markets were already pricing a significant possibility of further BoE tightening amid elevated inflation risks and energy prices.