Real Estate/News
UK house price growth halves to 0.8% in September, Nationwide says; prices fell 0.2% on the month to an average £274,251
Eight of thirteen regions grew by less than 1% in the third quarter and four fell. Northern Ireland led at 5.9%, East Anglia was weakest at -0.7%, and flats have gained 14% since 2020 against 31% for semi-detached homes.
By Daily Aletheia · Checked against the primary source · 1 October 2026 · 2 min read
Nationwide published its September House Price Index on 1 October.
The headline numbers
Annual house price growth halved to 0.8% in September from 1.6% in August, which Nationwide's chief economist Robert Gardner calls "the weakest rate of growth since December 2025". Prices fell 0.2% month on month after seasonal adjustment, following a 0.2% rise in August. The average price, not seasonally adjusted, was £274,251, down from £275,465.
Gardner ties the subdued market to the economic backdrop: the conflict in the Middle East pushing up energy prices, inflation concerns, and "mounting financial market expectations of Bank Rate increases", which have kept up the market rates that underpin mortgage pricing. Against that, he notes private sector wage growth has stayed modest and that affordability is improving because prices have grown well below earnings for some time, "only partially offset by higher mortgage rates".
The regions, third quarter
Eight of the thirteen regions saw annual growth below 1%, four of them small declines. Northern Ireland stayed strongest at 5.9%, down from 8.6% in the second quarter, with an average price of £227,922. The North West was England's top region at 3.9%, unchanged. Scotland and the North were both at 3.3%.
England overall slowed to 0.5%. Northern England was up 1.6% on the year; Southern England was down 0.1%. London was the only southern region to rise, by 0.4% to £529,720; the Outer Metropolitan area fell 0.2%, the South West 0.3%, the East Midlands 0.5% and East Anglia 0.7%. Wales slowed to 0.7% from 3.5%, with a quarterly fall of 1.4%.
Property types
All types slowed. Terraced houses led at 1.8%; flats were essentially unchanged on the year. Since the start of 2020 a typical flat has risen 14% in price, less than half the 31% rise for semi-detached homes, which Nationwide links to London's heavier share of flats and its underperformance.
The quarterly series puts the UK average at £276,157 for the third quarter, up 1.2% on the year and down 0.4% on the quarter seasonally adjusted. The quarterly and monthly series use different averages, so their annual figures differ.