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

Average price for property stands at £273,566 in October, flat on previous month, says Nationwide

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 price for a property in the UK stood at £273,566 in October, flat on the previous month and down from 0.8% in the year to September, according to the lender Nationwide.

The slowdown in the market comes as buyers face higher borrowing costs. This month the average cost of a five-year fixed-rate mortgage hit the 6% barrier for the first time in three years.