PwC comments on the latest ONS house price data - February 2026

Commenting on the latest ONS house price data, Paige Tao, Economist at PwC UK, says:

“Monthly UK house prices fell by 0.7% in December, rounding off the year on a soft note. While December is typically quieter for the housing market, this slowdown was more pronounced than usual. The delayed Autumn Budget left buyers waiting for policy clarity, with many pushing decisions beyond the festive period to the New Year. At the same time, a backlog of previously delayed listings returned to the market, giving buyers more choice and putting modest downward pressure on prices.

“Despite the volatility earlier in the year linked to stamp duty changes and wider fiscal uncertainty, the overall picture for 2025 remains relatively resilient. Mortgage approvals for house purchases recovered to close to pre-pandemic norms, suggesting underlying demand has held up nationally, albeit with stark regional variation. Easing inflation readings in the final quarter of 2025 and the Bank of England’s subsequent rate cut have also improved sentiment. In response, lenders have reduced mortgage rates and reintroduced higher loan-to-value products, which should support affordability particularly of first-time buyers

“That said, it may be too early to turn fully optimistic. If the Bank proves more hawkish than markets expect, with unemployment at a five-year high and wage growth easing, some households may remain cautious about committing to a purchase. 

“Looking ahead, activity is likely to gather pace in the new year as confidence returns, but with buyers enjoying greater choice, price growth may take longer to follow.”