PwC comments on the latest ONS house price data - October 2025

Commenting on the latest ONS house price data, Nabil Taleb, Economist at PwC UK, says:  

“According to the latest ONS data, UK house prices rose by 3% in the 12 months to August, down from 3.2% in July. The average home now costs around £273,000. House prices have grown steadily since the start of the year, suggesting the market has weathered higher interest rates, economic turbulence, and shifting stamp duty expectations better than many anticipated. 

“Private rents increased by 5.5% in the 12 months to September, compared with 5.7% in the previous month, making it the ninth consecutive month of slowing growth. Rents rose fastest in the North East, while Yorkshire and The Humber saw the smallest increase. Cooling rent growth may suggest some easing in demand as more renters look to buy. 

“The broader economic context remains challenging. Inflation remains sticky at 3.8%, wage growth is slowing, and mortgage rates remain relatively high. With inflation still above target, the Bank of England will be reluctant to cut interest rates, meaning relief for borrowers could be delayed. At the same time, policy speculation around stamp duty and the possibility of tax changes in the Budget, could further influence behaviour in the housing market. In short, while the headline numbers for house and rent inflation may be moderating, affordability improvements are fragile and highly contingent on interest-rate moves and fiscal policy decisions.”