UK House Price Growth Slows to 0.5% as Mortgage Rates Rise

UK house prices grew by an annual rate of just 0.5% in October, the slowest pace in more than two years, as higher mortgage rates put off potential buyers. The average property value stood at £273,566, flat compared to the previous month and down from a 0.8% annual increase in September, according to Nationwide Building Society. This marks a notable slowdown in the housing market momentum seen earlier in the year. Rising borrowing costs have cooled demand, leading to fewer transactions and softer price appreciation across the country. The data underscores how sensitive the UK property market remains to shifts in monetary policy, particularly as the Bank of England continues to adjust interest rates to manage inflation pressures.