UK House Prices Fall 0.2% in September; Annual Growth Slows to 0.8%, Weakest Since December 2025

British annual house price growth slowed to 0.8% in September, the weakest pace since December 2025, and prices unexpectedly fell 0.2% month-on-month, Nationwide Building Society reported on October 1, 2026. The annual figure halved from August's 1.6% gain and fell below the 1.3% forecast in a Reuters poll of economists. The monthly decline matched the joint-fastest drop since May, missing the zero-growth consensus. Nationwide chief economist Robert Gardner cited an uncertain economic backdrop and geopolitical tensions, with the Middle East conflict pushing energy prices higher and stoking inflation concerns. Markets expect the Bank of England to raise the benchmark Bank Rate by a quarter-point in November, with another increase priced in for February. Separately, Prime Minister Andy Burnham announced a loan program offering first-time buyers loans of up to 20% of a property's value with a 2.5% deposit, with details due in finance minister John Healey's budget this month.