British house prices rose unexpectedly for a fourth consecutive month in April, according to Nationwide Building Society, defying expectations of a slowdown amid global uncertainty.
Prices increased by 0.4% in April, following a stronger 0.9% rise in March, contrasting with forecasts of a 0.3% decline. On an annual basis, house prices climbed 3.0%, ahead of the expected 2.2% growth.
Nationwide’s chief economist Robert Gardner said the housing market is showing resilience despite pressure from rising energy costs linked to Middle East tensions and weakening consumer confidence.
While mortgage rates have increased — driven by higher financing costs since the Iran conflict — and sentiment has dropped to its lowest level since 2023, underlying fundamentals appear to be supporting demand.
Gardner pointed to strong household balance sheets, with debt levels at their lowest relative to income in around two decades, alongside income growth that has outpaced house prices in recent years.
However, the outlook remains mixed. Property surveyors have reported softer buyer demand and recent declines in prices earlier in the year, suggesting the recovery may still face headwinds in the coming months.
