UK House Prices Grow at Slowest Pace in Two Years as Mortgage Rates Rise

UK house prices grew by just 0.5% annually in October, the slowest pace in over two years, according to Nationwide. The average property price remained flat at £273,566 compared with September, down from 0.8% yearly growth the previous month. Higher mortgage rates are deterring potential buyers, cooling the market after a period of stronger growth. This slowdown matters because housing is a key indicator of economic health and consumer confidence. With borrowing costs elevated, affordability is stretched, and activity may remain subdued. Nationwide’s data signals a shifting landscape for buyers and sellers alike, with price growth losing momentum. The takeaway: expect a more stable but less dynamic housing market in the coming months.