House prices grow at slowest pace since 2024 as buyers adjust to higher energy bills and mortgage rates

Updated: 05:48 EDT, 30 October 2026 House prices rose at their slowest pace since early 2024 this month, as higher energy prices and low confidence in the economy put buyers off moving home.Annual price growth fell to just 0.5 per cent in October, down from 0.8 per cent in September and 1.6 per cent in August according to Nationwide. The typical home is now worth £273,566 with average house prices having fallen by £5,324 since April. Nationwide says this is the weakest annual growth it has recorded since January 2024 with prices flat year-on-year.Robert Gardner, chief economist at Nationwide said: 'Market activity and house price growth have slowed in recent months, in part reflecting the uncertain economic backdrop. 'Geopolitical tensions remain high, with the conflict in the Middle East exerting upward pressure on energy prices, fanning inflation concerns.'This in turn has led to mounting financial market expectations of bank rate increases, which have maintained upward pressure on the market interest rates which underpin mortgage pricing.' Falling: UK annual house price growth slowed to to 0.5% in October, the slowest pace since January 2024, according to NationwideHomes up for sale also outnumber families wanting to buy them, creating a buyers' market. Buying agent Jonathan Hopper of Garrington Property Finders said: 'In much of southern England, buyers are spoilt for choice. 'Those who can easily walk away to another suitable property have little reason to stretch themselves to meet a seller’s optimistic asking price.'Mortgage approvals for house purchases fell to 53,400 in September, according to the latest figures from the Bank of England, below an average of around 58,800 over the previous six months. They are down by almost a fifth compared to last year. Mark Harris, chief executive of mortgage broker SPF Private Clients, worries prices will continue to slide because interest rates are set to rise and the Government's new Your First Home scheme to help first-time buyers not starting until spring. 'The Bank of England has held base rate at 3.75 per cent all year but market expectations are that this will change next month on the back of inflationary pressures.'The Government’s plans to help first-time buyers via its new scheme unveiled in the Budget are welcome but they will have to wait until the spring to take action. 'Unfortunately, it seems unlikely that on its own it will be enough to boost the transactions and activity the market needs.'What next for house prices? House prices are expected to fall over the coming months with fewer buyers out house hunting and fewer sales agreed, according to the latest survey from The Royal Institution of Chartered Surveyors.The majority of Rics members reported that house prices were falling in their area in the September survey.Robert Gardner, of Nationwide thinks that once the shock of higher energy bills fades, the market will regain momentum. He said: 'The broader economy has proven surprisingly resilient to date, with annual economic growth accelerating in recent quarters.'Employment is holding up well, as are real incomes, while household balance sheets are solid, with debt levels still close to 20-year lows relative to household disposable income.'Moreover, the improvement in housing affordability seen over the past two years has been only partially unwound as a result of higher market interest rates, as income growth has continued to outpace house price growth by a wide margin.'How to find a new mortgage Mortgage rates have jumped as conflict with Iran has driven up inflation expectations and dashed hopes of interest rate cuts.If you need a mortgage because you are buying a home, or your current fixed rate deal is due to end, you should explore your options as soon as possible. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with expert mortgage advice.Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs.Or use L&C’s online Mortgage Finder to search thousands of deals from more than 90 different lenders to discover the best deal for you.Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage