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

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

“July’s UK house price data offers some relief, but not yet a recovery. Average prices rose 0.7% on the month and 1.4% on the year, but the underlying market remains weak: seasonally adjusted prices fell, transactions were down from both June and a year earlier, and mortgage approvals dropped to their lowest level since January 2024. Prices may be stabilising, but activity has not yet followed, with stretched buyers on one side and sellers resisting lower offers on the other. 

“Affordability remains the binding constraint. Higher energy costs are an increasing burden on household spending, while a weakening labour market is adding to buyer anxiety. Renewed tensions in the Middle East have pushed oil prices back above $100 a barrel, which revived inflation concerns and shifted rate expectations. After last week’s European Central Bank rate hike, and with the US Fed expected to move today, markets are increasingly pricing in a more hawkish path for the Bank of England, which is already feeding through into borrowing costs. 

“The risk is that fiscal policy uncertainty now adds another reason for buyers and sellers to wait. In a thin market, speculation ahead of the Autumn Budget can quickly delay decisions and deepen the stand-off. Like much of the economy, the UK housing market does not need more noise.”