House price growth halves to 0.8% as prices slip in September

The September numbers

Nationwide reported that UK annual house price growth halved to 0.8 percent in September 2026, down from 1.6 percent in August 2026. That was the weakest annual rate since December 2025. On a monthly basis, the seasonally adjusted change was minus 0.2 percent in September, compared with plus 0.2 percent in August. The monthly index stood at 548.3, down from 549.6. The average UK house price, which is not seasonally adjusted, was 274,251 pounds, down from 275,465 pounds in August. All figures in this section are as reported by Nationwide.

Two points help you read the table. First, the monthly change is seasonally adjusted, which means Nationwide adjusts for the time of year so that September can be compared with August on a like for like basis. Second, the average price is not seasonally adjusted, so it reflects the actual mix of properties in the month and can move for reasons other than underlying price pressure. Nationwide also notes that monthly percentage changes are revised when seasonal adjustment factors are recalculated. The annual rate of 0.8 percent is the headline figure and is the one that halved from August. The monthly fall of 0.2 percent is small in the context of a series that moves around from month to month. Taken together, the September report shows a market where annual growth has slowed sharply and the monthly index edged lower, according to Nationwide.

Where prices rose and fell

The national figure hides a wide regional split, as Nationwide reported it. England saw annual price growth slow to 0.5 percent. Within England, average prices in Northern England, comprising the North, North West, Yorkshire and The Humber, East Midlands and West Midlands, were up 1.6 percent year on year. Average prices in Southern England, comprising the South West, Outer South East, Outer Metropolitan, London and East Anglia, were down 0.1 percent year on year. London was the only southern region to record an annual price rise, at 0.4 percent, while the Outer Metropolitan region saw a 0.2 percent annual fall. East Anglia was the weakest performing UK region, with prices down 0.7 percent year on year. Northern Ireland remained the best performing region, with prices up 5.9 percent year on year in Q3 2026.

By property type, terraced homes saw the strongest annual growth at 1.8 percent, while flat prices were broadly unchanged compared with a year earlier. Nationwide reported that all property types saw a slowing in annual house price growth in Q3 2026. The pattern is one of a softer south and a more resilient north, with Northern Ireland standing apart from the rest of the UK. For anyone looking at a single area, these regional figures are averages across many local markets, and Nationwide's own data show that individual towns and postcodes can behave differently from the region they sit in. The regional numbers are as reported by Nationwide for the periods stated, with the Northern Ireland figure covering Q3 2026 rather than September alone.

What Nationwide says is behind it

Robert Gardner, chief economist at Nationwide, said that September saw UK annual house price growth halve to 0.8 percent, the weakest rate of growth since December 2025. In his view, underlying affordability is improving, as house price growth has been well below earnings growth for some time. He said this suggests that activity should regain momentum in the quarters ahead, providing the energy shock fades and confidence returns, especially if market interest rates fall back to pre-conflict levels. Those conditions are part of his view rather than a statement of what will happen. The forecast of regained momentum depends on all three: the energy shock fading, confidence returning, and market interest rates falling back to pre-conflict levels.

It is worth separating what Nationwide measured from what its chief economist expects. The measured facts are the 0.8 percent annual rate, the 0.2 percent monthly fall, the 548.3 monthly index and the 274,251 pounds average price. The expectation of stronger activity in the quarters ahead is a judgement, attributed to Gardner, and it is conditional. If the energy shock does not fade, or confidence does not return, or market interest rates do not fall back to pre-conflict levels, the basis for that expectation changes. Nationwide's own commentary does not forecast a specific path for house prices, and nothing in the September report sets out what prices will do next. The affordability point is also a relative one: house price growth has been below earnings growth for some time, which Nationwide says is improving underlying affordability, but that does not by itself tell you what will happen to prices in any particular area or property type.

What this index does and does not tell you

The Nationwide House Price Index is calculated from owner occupier house purchase transactions involving a mortgage from Nationwide. That makes it an early read on the market, because it is published soon after the month it covers and reflects actual agreed purchases rather than asking prices. It also means the index excludes cash purchases, which are a significant part of the market, and it reflects one lender's lending rather than the whole mortgage market. Monthly percentage changes are revised when seasonal adjustment factors are recalculated, so the first estimate of a month can change. The official UK House Price Index is based on completed transactions registered with HM Land Registry and the other national land registries, and is published with a longer lag than lender indices. Because the samples and timings differ, figures differ between sources, and a gap between Nationwide's number and the official index is normal rather than a contradiction.

A single month is a small movement in a volatile series, and the 0.2 percent monthly fall should be read in that light. The annual rate of 0.8 percent is a better guide to the direction of travel than one month's change, but it is still a national average. A national average says little about any individual property, where local demand and condition matter more. If you are looking at a specific home, the regional and property type figures give context, but they do not value that home. The index tells you what has happened to prices across Nationwide's mortgage approvals up to September 2026. It does not tell you what will happen next, and it does not tell you what any particular property is worth.

Source: Nationwide: the September House Price Index.

Related coverage on Kael Tripton: UK House Prices by Region 2026: Land Registry Data and Trends, UK House Prices Fell 0.6 Percent in May 2026: Nationwide Reports First Monthly Drop of the Year, Mortgage Rates Are Falling Before the Bank Even Moves: What Was Cut and Whether to Fix, What Are Swap Rates? How They Affect UK Mortgage Rates Explained, First Time Buyer ISA: Government Consults on LISA Replacement Launching April 2028.

Frequently asked questions

What did the Nationwide House Price Index show for September 2026?

Nationwide reported UK annual house price growth of 0.8 percent in September 2026, down from 1.6 percent in August 2026. The seasonally adjusted monthly change was minus 0.2 percent, and the average UK house price, not seasonally adjusted, was 274,251 pounds, down from 275,465 pounds in August.

Was September 2026 the weakest annual rate since when?

Nationwide reported that September 2026 recorded the weakest annual rate of house price growth since December 2025.

How did prices vary across the UK?

As reported by Nationwide, England saw annual price growth slow to 0.5 percent. Northern England was up 1.6 percent year on year, while Southern England was down 0.1 percent. London was the only southern region to rise, at 0.4 percent, and the Outer Metropolitan region fell 0.2 percent. East Anglia was weakest at minus 0.7 percent, and Northern Ireland was strongest at 5.9 percent year on year in Q3 2026.

What did Robert Gardner say about the figures?

Robert Gardner, chief economist at Nationwide, said September saw UK annual house price growth halve to 0.8 percent, the weakest rate since December 2025. In his view, underlying affordability is improving because house price growth has been well below earnings growth for some time, and he said activity should regain momentum in the quarters ahead, providing the energy shock fades and confidence returns, especially if market interest rates fall back to pre-conflict levels.

What does the Nationwide index measure?

The Nationwide House Price Index is calculated from owner occupier house purchase transactions involving a mortgage from Nationwide. It is an early read on the market but excludes cash purchases and reflects one lender's lending. Monthly percentage changes are revised when seasonal adjustment factors are recalculated.