The UK Nationwide House Price Index rose 0.5% year-on-year in October 2026, the weakest annual increase since January 2024. This was down from 0.8% in September and below market expectations of 0.6%. On a monthly basis, prices were flat, following a 0.3% decline in the previous month.
Nationwide Chief Economist Robert Gardner noted that both housing market activity and price growth have softened, reflecting an uncertain economic environment. He highlighted that tensions in the Middle East have driven energy prices higher, stoking inflation concerns and raising market expectations for further Bank Rate increases, which in turn are keeping upward pressure on mortgage rates.
Forward-looking indicators suggest continued weakness: surveyors are reporting subdued buyer enquiries, and consumer confidence deteriorated in October. Even so, Gardner said the market could regain momentum once the energy shock subsides, pointing to resilient economic growth, robust employment and real income gains, as well as generally healthy household balance sheets. He also noted that housing affordability has improved over the past two years, as income growth has outstripped house price increases.
