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UK house price growth slows to its weakest since January 2024 as five-year mortgage rates near 6%

UK house price growth slowed to 0.5% annually in October, leaving the average property at £273,566 — the lowest since January 2024, Nationwide said.
UK house price growth slowed to 0.5% annually in October, leaving the average property at £273,566 — the lowest since January 2024, Nationwide said.

Annual UK house price growth dropped to just 0.5% in October, Nationwide said, the weakest reading since January 2024, as surging mortgage costs drained buyer confidence. The average UK property was worth £273,566 last month, unchanged from September. Nationwide's chief economist Robert Gardner blamed the Iran war for stoking inflation fears, driving bond market volatility and pushing fixed-rate mortgage pricing higher.

Five-year fixed mortgage rates hit 6% for the first time in THREE YEARS this month, with two-year rates close behind at 5.97%.

The Bank of England has held its base rate at 3.75% since December, but markets now expect a rise to 4% at next week's MPC meeting.

Gardner warned surveyors are reporting weak buyer inquiries and consumer confidence 'dipped noticeably' in October, though he expects the market to recover once the energy shock fades.

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