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

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

"The UK housing market remains in wait-and-see mode ahead of the Autumn Budget. Annual house price growth slowed for a fourth consecutive month to just 0.9% in August, while buyer activity remains subdued despite ample supply and greater scope to negotiate on price. Higher borrowing costs and uncertainty over the global and domestic outlook continue to keep households cautious. Mortgage approvals have fallen to their lowest level since 2023, while transactions are down both on the month and on the year.

"Affordability remains the immediate constraint. Mortgage rates have climbed to a three-year high, squeezing purchasing power and making buyers more sensitive to price. First-time buyers have had some welcome news, with the Government expected to set out further details of its new Your First Home scheme at the Budget. The scheme is designed to lower barriers to getting onto the ladder and support demand. Its impact is uncertain when the issue is increasingly a lack of buyers willing or able to transact at current financing costs. 

"That makes the Autumn Budget important for the housing market even if there are no major changes to property taxes. Fiscal credibility matters because gilt yields directly feed into the cost of mortgage finance. A Budget that unsettles markets could push borrowing costs higher and further delay transactions; one that restores confidence could do the opposite. For a housing market already waiting for a reason to move, greater policy certainty may prove even more important than tax relief.”