UK house prices rose by 3% in April compared to the same month last year, the fastest annual pace in 11 months, according to Nationwide. The typical property now costs £278,880, up from £272,000 in March.
Prices increased for the fourth consecutive month, rising 0.4% in April after a 0.9% gain in March. Economists had expected a 0.3% monthly decline. On a three-month basis, growth accelerated to 1.2% from 0.7% in the previous quarter, the highest since February 2025.
Nationwide chief economist Robert Gardner said the rise was "somewhat surprising" given that consumer confidence had weakened noticeably. A GfK survey showed confidence slid in April to its lowest level since October 2023, while estate agents reported falling buyer inquiries and sales in March.
Gardner attributed the resilience to strong household finances, noting that household debt is at its lowest relative to income in about two decades, and sizeable savings buffers have been built up. However, some economists doubt the growth will last, as the data may reflect sales agreed before the full impact of the Iran conflict on mortgage rates.
The Bank of England kept interest rates on hold on Thursday but warned they may need to rise if energy costs stay high. The housing market also saw the Renters' Rights Act become law, banning no-fault evictions and limiting rent rises.
