PRESS RELEASE : PwC comments on October’s ONS house price figures [December 2022]

The press release issued by PWC on 14 December 2022.

House prices rose 12.6% over the last 12 months and 0.7% over the last month, according to the ONS’s latest house price data.

Commenting on the latest house price data, Jamie Durham, economist at PwC UK, says:

“While price growth remains higher than would be expected given the economic conditions, the figures are skewed upwards by a couple of factors. The first of these is the end of the stamp duty holiday in September 2021, which dampened prices in October 2021. The other is the delay between someone agreeing to purchase a property and it being counted in the ONS data, which means these headline figures reflect a point before economic conditions tightened.

“When looking at more up to date measures, it is clear that the housing market has started to lose momentum. Higher interest rates, rising inflation, and the threat of recession are putting pressure on household budgets and many will think again about whether now is the time to buy and how much they can afford to pay.

“Other data released this morning shows inflation may now have peaked, but is likely to remain high for a while. As such, the Bank of England will likely decide to continue to increase interest rates over the coming months, which will further weigh on demand for buying a home.

“Given the current economic conditions, there is considerable uncertainty in the outlook for the housing market. However, stretched household finances, rising interest rates, and a likely recession means a decline in house prices does look likely over the coming months.”