House price growth slowed further in September, although significant differences between regions of the UK continue to be evident.

This article examines the latest House Price Index figures and highlights the main developments affecting the housing market.

2 October 2026

Key House Price Figures

Average house price

£274,251^

Previously £275,465 in August 2026.

Annual price change

0.8%

Down from 1.6% in August 2026.

Monthly price change

-0.2%*

Down from 0.2% in August 2026.

Monthly House Price Index

548.3*

Down from 549.6 in August 2026.

^ Figures are not seasonally adjusted.

• Figures are seasonally adjusted. Monthly percentage changes may be revised when seasonal adjustment factors are recalculated.

Commentary from Nationwide's Chief Economist

Robert Gardner, Chief Economist at Nationwide, provided the following comments on the latest figures:

In September, annual house price growth across the UK fell by half to 0.8%, marking the slowest annual increase since December 2025. After seasonal adjustments, house prices decreased by 0.2% compared with the previous month.

Housing market activity and property prices have remained relatively subdued over recent months. This has partly been influenced by continued uncertainty surrounding the wider economic environment.

Geopolitical tensions remain elevated, and the conflict in the Middle East has contributed to rising energy prices, increasing concerns about inflation. As a result, financial markets have increasingly anticipated potential increases in the Bank Rate. These expectations have continued to place upward pressure on the market interest rates that influence mortgage costs.

However, there have been some positive indications that higher energy prices are not yet translating into broader underlying price pressures. Private sector wage growth, in particular, has remained moderate. This could give policymakers additional time to assess how much further tightening of monetary policy may be required to bring inflation sustainably back to its target.

Housing affordability is gradually improving because house price increases have remained significantly below earnings growth for an extended period. Although higher mortgage rates have reduced some of these improvements, they have not entirely cancelled them out.

This suggests that housing market activity could begin to strengthen again over the coming quarters, provided the impact of the energy price shock diminishes and consumer confidence improves. A return of market interest rates to levels seen before the conflict would also help support this recovery.

House Price Growth Slows Across Most Regions

During the third quarter of the year, covering the three months to September, annual house price growth slowed across most UK regions.

Of the 13 regions, eight recorded annual price growth of less than 1%. Four of these regions experienced small annual price declines.

The figures also highlight a clear geographical divide, with the strongest house price performance concentrated in northern England, Scotland and Northern Ireland.

Northern Ireland continued to outperform the other regions by a considerable margin. However, its annual house price growth slowed to 5.9% in the third quarter, compared with 8.6% in the second quarter.

Within England, the North West remained the strongest-performing region. This area includes Cheshire, Lancashire and Greater Manchester. House prices in the region were 3.9% higher than a year earlier, unchanged from the previous quarter.

Across England as a whole, annual house price growth slowed to 0.5%.

Meanwhile, average house prices across Northern England increased by 1.6% year on year. For the purposes of these figures, Northern England includes the North, North West, Yorkshire and The Humber, East Midlands and West Midlands.

Important Information

This article is provided for general information purposes only. It does not constitute financial advice or a recommendation to purchase or sell property.

Property prices may rise or fall, and past performance should not be regarded as a reliable indication of future results. Anyone considering property-related decisions should take their individual circumstances into account and seek appropriate professional advice where necessary.