Commenting on the latest ONS house price data, Jake Finney, economist at PwC UK, says:
“House prices declined by 0.2% in the 12 months to February 2024. However, the rate of decline was less severe than over the past seven months, potentially signaling that we are approaching the end of the housing market correction.
“This is supported by survey data from RICS and the Bank of England Agents, which suggests that the housing market is close to bottoming out - presenting a more upbeat picture for housing activity over the next couple of years, compared to the last twelve months. Ultimately, the extent of the recovery will depend upon the pace and scale of the Bank of England’s rate cuts which are expected later this year.
“On the flip side, private rental inflation continues to reach new highs, adding to the cost-of-living pressures facing households. One saving grace is that inflation pressures are easing in most other areas, with food and energy inflation in particular coming down sharply.”
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