London, United Kingdom. British house prices rose for a fourth month in a row in April, despite headwinds to consumer confidence from conflict in the Middle East, according to mortgage lender Nationwide Building Society.
April increase beats expectations
House prices rose 0.4% in April after a 0.9% increase in March, compared with economists’ expectations in a Reuters poll for a 0.3% drop. Prices were 3.0% higher than a year earlier, faster than the expected 2.2% growth.
Nationwide cites renewed momentum despite uncertainty
“Despite the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices, the UK housing market has continued to regain momentum following the slowdown recorded around the turn of the year,” Nationwide chief economist Robert Gardner said. “This is somewhat surprising given that indicators of consumer confidence have weakened noticeably,” he added.
Mortgage rates and sentiment indicators
Financing costs driving British mortgage rates have risen since the start of the Iran war to their highest since late 2024, and consumer sentiment has fallen to its lowest since 2023, according to GfK’s long-running survey. Property surveyors reported weaker buyer demand in March and the broadest decline in house prices since January 2024.
Support from household finances
Gardner said demand appeared to be supported by strong household finances, with debt levels the lowest relative to income in around 20 years, and by household income growth having outpaced house prices in recent years.
Halifax reported March decline
Rival mortgage lender Halifax reported a 0.5% fall in house prices in March.
How do you think changes in mortgage rates will affect your housing decisions this year?
