UK house prices rose for the fourth consecutive month in April, recording the fastest annual pace in 11 months, according to Nationwide. The building society's data showed a 3% year-on-year increase, up from 2.2% in March, pushing the average property value to £278,880. Month-on-month, prices grew by 0.4%, defying economists' expectations of a 0.3% decline.
Market Resilience Amid Global Uncertainty
Robert Gardner, Nationwide's chief economist, noted the surprising strength despite geopolitical tensions. '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,' he said.
On a three-month basis, which smooths monthly volatility, prices rose 1.2% from 0.7% in the previous quarter, the highest growth since February 2025.
Consumer Confidence vs. Market Data
The price rise contrasts with weakening consumer confidence. GfK's barometer showed UK consumer confidence slid in April to its lowest since October 2023. A survey of estate agents also reported sharp falls in new buyer inquiries and sales in March, with pessimistic near-term sales expectations.
However, Nationwide's data suggests homebuyers have been less affected than feared by lenders withdrawing mortgage products and raising rates since the Middle East conflict began. The Bank of England held interest rates steady but warned of potential rises if energy costs stay high.
Household Finances Supporting Market
Gardner attributed the resilience to strong household finances. 'In aggregate, household debt is at its lowest level relative to income for around two decades, and sizeable savings buffers have been built up in recent years,' he said.
Nevertheless, economists remain cautious. Rob Wood, chief economist at Pantheon Macroeconomics, said: 'Unfortunately, we doubt prices can keep up their recent pace. Potentially, some of the prices included in the Nationwide index were from sales agreed in the early stages of the Iran war. The Nationwide measures prices at the mortgage approvals stage, partway through the purchase timeline.'
New Renters' Rights Act Becomes Law
The price rise coincided with the Renters' Rights Act coming into law, aimed at giving tenants more security. It bans no-fault evictions, limits rent rises to once a year and only to market rate, and stops landlords from accepting offers above the asking price. Tenants also gain the legal right to request a pet, which landlords cannot unreasonably refuse.
