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

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

“Affordability is a hot topic of discussion in the UK housing market at the moment. Falling house price growth and easier access to mortgages have given more Brits a chance to move to home ownership. According to the ONS, house prices rose by 2.8% in the year to July, down from 3.6% in June, and 2pp slower than nominal wage growth. That means pay packets are outpacing property prices, providing a further buffer for buyers. Separate Bank of England figures back this story up, with 65,400 mortgage approvals in July - the highest since January.

“Growth of rental costs is also cooling. Annual private rents inflation slowed for the eighth month in a row to 5.7%, with lower mortgage costs reducing pressure on buy-to-let landlords to raise rents. Cheaper borrowing is also encouraging some renters to become first-time buyers, easing demand in the lettings market.

“The road to further affordability improvement is uncertain. The latest data from the Bank of England shows that mortgage costs are still two to three times the pre-pandemic levels, and wage growth itself is slowing. Moreover, this morning’s CPI reading remained at its highest level since January 2024 at 3.8%. With that in mind, the Monetary Policy Committee may pause on further rate cuts, at least in the September meeting, delaying further relief for borrowers.”