Commenting on the latest ONS house price data, Paige Tao, Economist at PwC UK, says:
“The UK housing market continued to stagnate in October as tax hike fears ahead of the Autumn Budget held back many potential buyers. This morning’s ONS data shows UK house prices fell by 0.1% between September and October, the second monthly drop in 2025 since April’s stamp duty changes. Sales volumes in August were down by as much as 30% compared with a year earlier.
“London continues to lag the rest of the UK, with prices falling 2.4% year-on-year in October as elevated mortgage rates and speculations around a new “mansion tax” weigh on demand. Our analysis suggests London house prices are likely to remain flat or edge down through 2026, leaving the capital out of step with other major global cities such as New York, Los Angeles, Toronto and Singapore.
“Looking ahead, the Budget’s lighter-than-feared impact should allow activity to recover, with a likely New Year rebound as postponed listings return. A continued modest improvement in affordability will provide an additional boost, as wage growth outpaces house prices and interest rates drift lower, which could arrive as early as tomorrow.“
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