UK house prices September 2026: growth halves to 0.8%

UK house prices in September 2026 grew at half the pace of the previous month, according to the latest Nationwide House Price Index. Annual growth slowed to 0.8% from 1.6% in August, the weakest rate since December 2025.

Nationwide also reported that prices fell 0.2% month on month in September after seasonal adjustment, following a 0.2% rise in August. Robert Gardner, the lender’s chief economist, said: “Market activity and house prices have remained subdued in recent months, in part reflecting the uncertain economic backdrop.”

House price growth slowing in 2026: the figures

The table below sets the Nationwide numbers for the last two months beside the mortgage data reported by Moneyfacts. Together they show prices cooling just as borrowing has become more expensive.

To put the slowdown in pounds, 0.8% growth adds £2,000 over a year to a home worth £250,000, where 1.6% would have added £4,000. That is an illustration rather than a Nationwide figure, but it shows how quickly the annual gain is shrinking for the typical owner.

What is behind it: mortgage rates and the UK housing market

Mr Gardner pointed to geopolitical tensions, particularly in the Middle East, which he said have pushed up energy prices and inflation concerns. These pressures have led to “mounting financial market expectations of” Bank of England base rate increases, which have kept mortgage rates elevated.

Bank of England base rate has not changed since December last year. Even so, volatility in bond markets has pushed up the swap rates that influence fixed-rate pricing, and most big lenders have raised prices in recent weeks. Rachel Springall of Moneyfacts called the impact on rates “brutal”.

Tom Bill, head of UK residential research at Knight Frank, said house prices were “stalling as the impact of rising mortgage rates takes its toll on demand”. He expects that pattern to continue in the final three months of this year, and said mortgage approvals in August were 14% below the five-year average.

What it means for buyers, sellers and homeowners

For borrowers the cost is concrete. HomeOwners Alliance figures show a £250,000 loan fixed at 6% for five years costs £158 more a month than the same loan at 4.94%, the average at the start of February. Over a year that is £1,896 extra, which is close to the £2,000 that 0.8% growth would add to a £250,000 home.

Ian Harris, president of NAEA Propertymark, said: “For some buyers, even a relatively small increase in monthly repayments can mean they have to reduce their budget or step back from a purchase altogether.” He added that homeowners coming off fixed deals may face significantly higher repayments, which could affect their decision to move.

There is some better news on affordability. Mr Gardner said house price growth has been well below earnings growth for some time, and that these gains have been “only partially offset by higher mortgage rates”. Sellers, meanwhile, are negotiating. Property Solvers found that sellers in Stowmarket, Suffolk, cut an average of £9,449, or 3.07%, from their original asking price in the 12 months to September 2026. Its tool lets anyone compare asking and sold prices by postcode.

Your questions answered

Are house prices likely to increase in 2026?

Prices are still higher than a year ago, but only by 0.8% according to Nationwide, and they fell on the month in September. Knight Frank expects the stalling to continue to the end of the year, though Mr Gardner is confident activity should regain momentum in the quarters ahead if energy price pressures fade and confidence returns.

Will 2026 be a good time to sell?

That depends on the home and the price. Ruban Selvanayagam of Property Solvers said: “Well-priced homes continue to sell across the country”, but buyers are more discerning and more conscious of value than a few years ago.

What is the future of real estate?

The sources do not offer a long-term view. Knight Frank said the outlook beyond 2026 depends on how the Middle East conflict unfolds and on the property measures announced in the Autumn Budget, which Propertymark said is only weeks away.