September saw UK annual house price growth halve to 0.8%, the weakest rate of growth since December 2025, the latest Nationwide house price index shows.
Prices were down 0.2% month-on-month, after taking account of seasonal effects.
Most regions saw a slowing in annual house price growth in Q3. Eight of the thirteen regions saw annual growth below 1%, with four of these recording a small annual decline.
Northern Ireland remains the strongest performing region by a healthy margin, although annual price growth slowed to 5.9%, from 8.6% in Q2.
Overall, England saw annual price growth slow to 0.5%. Average prices in Northern England (comprising North, North West, Yorkshire & The Humber, East Midlands and West Midlands) were up 1.6% year-on-year. The North West (which includes areas such as Cheshire, Lancashire & Greater Manchester) remained the top performing region in England, with prices up 3.9% annually, unchanged from last quarter.
Meanwhile, average prices in Southern England (South West, Outer South East, Outer Metropolitan, London and East Anglia) were down 0.1% year-on-year. London was the only southern region to record an annual price rise, a modest 0.4%. Meanwhile, the surrounding Outer Metropolitan region saw a 0.2% annual fall. East Anglia was the weakest performing UK region, with prices down 0.7%.
The data also shows that terraced properties were the strongest performing property type, with a 1.8% rise, whilst flats remained weakest with prices essentially unchanged compared with a year ago.
Robert Gardner, Nationwide's chief economist, said: “Market activity and house prices have remained subdued in recent months, in part reflecting the uncertain economic backdrop. 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.
“Nevertheless, there have been encouraging signs that higher energy prices are not feeding through to underlying price pressures. In particular, private sector wage growth has remained modest, which should give policymakers breathing space to assess the extent to which tighter policy is necessary to ensure inflation returns sustainably to target.
“Underlying affordability is improving, as house price growth has been well below earnings growth for some time. These gains have been only partially offset by higher mortgage rates. This suggests that activity should regain momentum in the quarters ahead providing the energy shock fades and confidence returns - especially if market interest rates fall back to pre-conflict levels."
Amy Reynolds, head of sales at estate agency Antony Roberts, commented: “We're seeing a sensible, needs-driven market: well-presented homes priced correctly are selling, and those pitched too hopefully are sitting. The Nationwide figures are not surprising as we expect a quieter-than-usual September and October for new stock as people 'wait and see' ahead of the Budget. 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."
