UK House Prices Unexpectedly Fall in September Amid Rising Borrowing Costs

British annual house prices recorded their weakest annual growth since December 2025 and unexpectedly fell by 0.2% month-on-month in September. This decline is attributed to higher borrowing costs, which have been impacted by the ongoing conflict in Iran pushing up energy prices and fueling inflation concerns. Financial markets anticipate the Bank of England will raise its benchmark Bank Rate in November and again in February.