The UK Nationwide House Price Index increased 0.8% year-on-year in September 2026, slowing from a 1.6% rise in August and coming in below the expected 1.3% gain. This was the weakest annual reading since December 2025. Nationwide Chief Economist Robert Gardner noted that both market activity and house prices have remained subdued in recent months, in part due to an uncertain economic environment. He highlighted that the conflict in the Middle East has pushed energy prices higher, exacerbating inflation concerns.
At the same time, Gardner pointed out that private-sector wage growth has stayed relatively modest, which may give policymakers scope to judge how much further tightening is required to bring inflation back to target on a sustained basis. He added that housing affordability is gradually improving, as house prices have been rising more slowly than earnings for some time, though this benefit has been partially eroded by higher mortgage rates. On a monthly basis, house prices fell 0.2% in September, following a 0.2% increase in August and missing expectations for flat growth.
