British house prices surged for fourth consecutive month in April, defying expectations of decline amid Middle East conflict and rising energy costs, according to Nationwide Building Society’s report on Friday.
The property market saw a 0.4% increase in April, following a 0.9% rise in March, surpassing economists’ forecast for a 0.3% drop as per a Reuters poll.
Prices are now 3.0% higher than last year, outpacing the anticipated 2.2% growth rate.
Nationwide’s chief economist, Robert Gardner, noted that despite Middle East uncertainty and increased energy costs, UK housing market has regained momentum post-year-end slowdown.
Financing costs have risen due to Iran war, reaching their peak since late 2024, while consumer sentiment has plummeted to its lowest level since 2023. Despite weaker buyer demand in March and broadest price decline since January 2024, Gardner attributes current demand to robust household finances and income growth surpassing house prices.