UK house price growth slowed further in October, with annual prices rising by just 0.5%, down from 0.8% in September, according to the latest Nationwide House Price Index.

The latest figure marks the slowest annual rate of house price growth since January 2024, while prices remained unchanged month-on-month after seasonal adjustment.

Robert Gardner, Nationwide’s chief economist, said the slowdown in market activity and house price growth in recent months was partly a result of economic uncertainty.

“Geopolitical tensions remain high, with the conflict in the Middle East exerting upward pressure on energy prices, fanning inflation concerns,” he said.

Gardner added that expectations of base rate increases had put further upward pressure on the market interest rates that underpin mortgage pricing.

The outlook for the housing market also remains subdued in the near term, with surveyors reporting weak new buyer enquiries and consumer confidence falling in October.

Gardner said households had become less confident about both the wider economic outlook and their own financial circumstances over the coming year.

However, he believes there are reasons for optimism once the current energy shock begins to fade.

“The broader economy has proven surprisingly resilient to date, with annual economic growth accelerating in recent quarters,” he said.

“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.”

Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, said: “Mortgage rates have risen far faster than anyone expected since the spring, and buyers have changed how they behave. People are choosing to borrow less and are cautious about moving.

“Anticipation as to what might be in the Budget undeniably slowed the market down. Finally, we have some certainty, but a reduction in stamp duty would have been a real help and while a cut to the mansion tax threshold has been parked for now, fear of what else might come along to squeeze ordinary people has put the brakes on a market that was already slow. With a rate rise expected next week, fixed-rate mortgages are unlikely to fall before Christmas, so December will be even quieter than usual.”