PwC comments on April's ONS house prices figures

The average house price in the UK reached a record £281,000 in April. Prices increased 12.4% versus last year, up from 9.7% in Apri. according to latest ONS figures

Commenting on April's ONS house price data, Jamie Durham, economist at PwC UK, said:

“While declining consumer confidence showed households were starting to feel cost of living pressures in April, these figures largely reflect house sales that were agreed at the end of 2021 or early 2022 when the economic outlook was stronger.

“Consistently high house price growth over the last year has been underpinned by a variety of factors, including a relatively low stock of homes on the market relative to demand, a strong labour market, and the accumulation of more than £200bn of savings during lockdowns.

“Over the coming quarters we expect price growth to slow as cost of living pressures start to bite and the supply of homes on the market, relative to demand, continues to recover.

“Inflation reached 9.1% in May 2022 and is expected to rise to more than 11% later in the year, which will put pressure on household budgets and has pushed consumer confidence to record lows. The Bank of England’s move to increase interest rates, which are expected to reach 2-3% by mid-2023, may also affect the affordability of new mortgages.”