UK house price growth slows to weakest pace since early 2024

Summarised from 4 outlets · Updated 30 Oct, 10:00 · Archive

UK house prices grew by 0.5% annually in October, the slowest pace since January 2024, as higher mortgage rates deter buyers.

UK house prices grew by just 0.5% in October, according to Nationwide Building Society, marking the slowest annual growth rate since January 2024. The average property price across the UK stood at £273,566, flat on the previous month and down from growth of 0.8% in September and 1.6% in August. On a month-on-month basis, prices remained unchanged.

The slowdown reflects mounting pressure on borrowers from higher mortgage costs. Five-year fixed-rate mortgages have hit 6% for the first time in three years, while two-year rates stand at around 5.97%, according to financial information provider Moneyfacts. Although the Bank of England has kept its base rate at 3.75% since December, market expectations of imminent interest rate rises have driven up swap rates that influence mortgage pricing.

Robert Gardner, Nationwide's chief economist, attributed the slowdown to broader economic uncertainty, noting that geopolitical tensions and the Middle East conflict have raised energy price concerns and inflation fears. He said: 'Market activity and house price growth have slowed in recent months, in part reflecting the uncertain economic backdrop.' He added that surveyors report weak new buyer inquiries and consumer sentiment has dipped noticeably, with households less confident about the outlook for the general economy and their own finances.

Mortgage approvals for house purchases fell to 53,400 in September, down nearly a fifth compared to the previous year and below the six-month average of around 58,800. Homes up for sale now outnumber families wanting to buy them, creating a buyers' market in many areas. Buying agent Jonathan Hopper of Garrington Property Finders said buyers in much of southern England are spoilt for choice and have little reason to stretch themselves to meet sellers' asking prices.

Gardner said the property market was expected to remain under pressure in the near term but should recover once the energy price shock fades. City AM reports that property experts criticised the government's Budget for failing to set out measures to tackle challenges facing the housing market, though this criticism came from only one outlet.

How it is being reported

• House prices grow at slowest pace since 2024 as buyers adjust to higher energy bills and mortgage ratesHouse prices rose at their slowest pace since early 2024 this month, as higher energy prices and low confidence in the economy put buyers off moving home.This is Money · 30 Oct, 09:46
• House prices rise at slowest rate in years as Budget ‘fails to boost market’House prices rose at their slowest rate since the start of 2024 in October, as property experts said the Budget failed to boost the UK’s beleaguered housing market. The average house price in the UK rose by 0.5 per cent this month to £273,566, according to Nationwide, slowed from 0.8 per cent growth last month [...]City AM · 30 Oct, 09:44
• UK house prices grow at slowest pace in two years as mortgage rates riseSluggish growth of 0.5% in October comes as higher borrowing costs put break on market UK house prices grew by an annual rate of just 0.5% in October, the slowest pace in more than two years, as higher mortgage rates put off potential buyers. The average price for a property in the UK stood at £273,566 in October, flat on the previous month and down from 0.8% in the year to September, according to the lender Nationwide. Continue reading...Guardian Business · 30 Oct, 09:05
• Annual house price growth slows to weakest since January 2024Nationwide Building Society said property values grew by 0.5% in October, down from growth of 0.8% in September.Evening Standard · 30 Oct, 08:12

In this story: Nationwide Building Society · Bank of England · Moneyfacts · Knight Frank · Garrington Property Finders · Robert Gardner · Jonathan Hopper · United Kingdom

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log