UK House Prices 2026: September Prices Fall as Mortgage Rates Hit 4.60%
UK House Prices Fall in September 2026 as Mortgage Rates Rise: Is a Bigger Property Slowdown Coming? London | October 1, 2026 Britain’s housing market has entered the final quarter of 2026 on a weaker footing, with UK house prices unexpectedly falling in September while mortgage borrowing costs continue to rise. Nationwide Building Society’s latest house-price index shows that prices fell 0.2% month-on-month in September , after seasonal adjustment. Annual house-price growth slowed sharply to just 0.8% , down from 1.6% in August and the weakest annual growth since December 2025. The average UK home in Nationwide’s monthly series was valued at £274,251 , down from £275,465 in August. The slowdown comes at an awkward moment for prospective buyers. Bank of England data released this week shows that the effective interest rate actually paid on newly drawn mortgages climbed to 4.60% in August , from 4.45% in July. Mortgage approvals for house purchases dropped to 54,900 , well below t...