UK house prices fall 0.6% in October amid rising mortgage rates

UK house prices fall 0.6% in October amid rising mortgage rates

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UK house prices fell 0. 6% in October, the steepest monthly decline since August 2023, as data released on 5 November showed average values of £296,285. The drop reflected pressure from high mortgage rates and rising inflation.

The fall followed the Bank of England’s base-rate increase announced on 6 November, which lifted monthly payments for tracker and standard-variable-rate mortgage borrowers while giving modest gains to savers with easy-access accounts. Earlier in the month, analysts at Savills warned that higher mortgage rates linked to the Middle-East conflict would keep prices falling through 2027, and the Guardian reported that more than 2. 3 million households were expected to see mortgage payments rise as fixed-rate deals expired.

Actors

Bank of England Andrew Bailey UK Finance Office for Budget Responsibility Ofgem EDF John Healey Office for National Statistics

Locations

London, United Kingdom Strait of Hormuz Middle East

Articles

November 06, 2026
1 total
UK house prices drop 0.6% in October, marking steepest decline in over three years
UK house prices drop 0.6% in October, marking steepest decline in over three years

The Guardian • 06 Nov 08:07

Average UK home values fell 0.6% in October to £296,285, the sharpest monthly drop since August 2023, as high mortgage rates and rising inflation weigh on demand.

Credibility 82% Manip. 8% Center
November 05, 2026
1 total
UK base rate rise raises costs for some mortgage borrowers while sparking modest gains for savers
UK base rate rise raises costs for some mortgage borrowers while sparking modest gains for savers

The Guardian • 05 Nov 15:42

The Bank of England's latest interest-rate increase will lift monthly payments for tracker and standard-variable-rate mortgage holders, while savers with easy-access accounts may see slightly higher returns.

Credibility 88% Manip. 8% Center
November 04, 2026
2 total
UK house prices projected to fall through 2027 before modest recovery in 2028
UK house prices projected to fall through 2027 before modest recovery in 2028

The Telegraph • 04 Nov 07:00

Savills forecasts a decline in UK house prices until the second half of 2028, driven by higher mortgage rates linked to the Iran conflict, with a modest rebound expected thereafter.

Credibility 78% Manip. 12% Center
Savills predicts UK housing market recovery not until 2028
Savills predicts UK housing market recovery not until 2028

The Guardian • 04 Nov 05:00

Savills forecasts a continued decline in UK house prices through 2027, with a recovery expected from the second half of 2028, citing higher mortgage rates linked to the Middle East conflict.

Credibility 82% Manip. 8% Center
November 02, 2026
1 total
UK households face higher mortgage costs as Bank of England likely raises rates
UK households face higher mortgage costs as Bank of England likely raises rates

The Guardian • 02 Nov 06:00

More than 2.3 million UK households are expected to see mortgage payments rise when fixed-rate deals end, amid an anticipated increase in the Bank of England’s base rate and higher energy costs.

Credibility 88% Manip. 12% Center

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