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

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

“UK house prices increased by 0.3% between October and November, reversing the downward trend since September, when speculation over potential property tax changes in the Autumn Budget led buyers and sellers to pause. With the Budget proving less disruptive than feared, and the Bank of England cutting interest rates in December, confidence is starting to return, and we expect activity to further rebound in the New Year. Nonetheless, as postponed listings return to the market, buyers will have plenty of choice. Sellers will therefore still find it hard to put prices back up in the near term. 

“Price trends also diverged largely by property type. Terraced homes performed best in the 12 months to November 2025, recording average annual growth of 3.4%, while flats continued to underperform, showing no growth over the same period. London, where flats make up a larger share of the housing stock, saw flat prices fall by 3.7%, the second largest decline recorded in two years. This likely reflects buyers’ growing resistance to high service charges and ground rents that do not build equity amid subdued economic conditions.

“This cooling demand for London flats is also visible in the rental market. Private rent growth has now declined for 13 consecutive months in London, with the capital recording the weakest rental growth of any region at just 2.1% in December 2025.”