# UK house prices grow at slowest pace in two years as mortgage rates rise

- URL: https://talkfuse.com/story/uk-house-prices-grow-at-slowest-pace-in-two-years-as-mortgage-rates-rise/
- Published: 2026-10-30T09:05:48+00:00
- Updated: 2026-10-30T09:48:37+00:00
- Original publisher: The Guardian (publisher lean: Left)
- Original article: https://www.theguardian.com/business/2026/oct/30/uk-house-prices-grow-at-slowest-pace-in-two-years-as-mortgage-rates-rise
- Topics: Business, UK, World

## Key points

- Annual house price growth slowed to 0.5%.
- The average home cost £273,566 in October.
- Mortgage rates near 6% are weighing on demand.

## Summary

UK house prices rose by just 0.5% in the year to October, their slowest annual growth in more than two years. The slowdown matters because higher mortgage costs are discouraging buyers and putting pressure on the outlook for property prices.

Nationwide said the average UK home cost £273,566 in October, unchanged from September, when annual growth was 0.8%. Average five-year fixed mortgage rates reached 5.99%, while two-year rates stood at 5.97%; economists linked rising borrowing costs to bond-market volatility and inflation concerns. The government’s £4.7bn first-home scheme may offer some support, but analysts expect prices to remain subdued.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.