House prices: growth slows to weakest since January 2024, Nationwide says

UK house price growth has slowed to its weakest pace since January 2024, according to Nationwide, as rising mortgage rates take the heat out of the market.

What the figures show

Prices were unchanged in October after taking account of seasonal effects, and were just 0.5% higher than a year earlier. The average price fell slightly to £273,566, from £274,251 in September.

Why is the market slowing?

Mortgage rates have climbed faster than expected since the spring. Higher energy prices and inflation worries mean markets now expect the Bank of England to raise interest rates, which pushes up the rates lenders charge, even though the Bank has held Bank Rate at 3.75% all year.

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What happens next?

The Bank of England announces its next decision on Thursday at noon, and most economists expect a rise to 4%. If that happens, tracker and variable mortgages will go up quickly, and new fixed deals could get more expensive too.

Sources: Nationwide, The Intermediary. Photo: terraced houses, Wynyatt Street, Jim Osley, CC BY-SA 2.0.

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