By Ahmed Abdelsalam
UK annual house price growth slowed to its weakest pace since January 2024, according to Nationwide Building Society. Property values rose 0.5% in October, down from 0.8% in September.
Monthly prices unchanged
On a month-on-month basis, prices remained flat, with the average UK property standing at £273,566 in October.
Mortgage costs and inflation concerns
Nationwide’s chief economist Robert Gardner attributed the slowdown to rising mortgage costs driven by expectations of interest rate increases as policymakers aim to cool inflation fueled by the Iran war.
Geopolitical tensions weigh on market
Gardner said geopolitical tensions in the Middle East are pushing up energy prices, fanning inflation concerns and leading to expectations of bank rate hikes, which keep mortgage rates high.
Weak buyer demand but potential recovery
He noted that surveyors report weak new buyer inquiries and consumer sentiment dipped in October, but expects the market to recover once the energy price shock fades.
