Nationwide, the UK's largest building society with branches in Birmingham, has announced that annual house price growth accelerated to 3.0% in April, up from 2.2% in March. This increase translates into a £1,694 boost for homeowners, as the average house price reached £278,880 in April 2026, compared to £277,186 in March.
Monthly and Annual Trends
House prices rose by 0.4% month on month, after adjusting for seasonal effects. According to Robert Gardner, Nationwide's Chief Economist, the housing market has continued to regain momentum following a slowdown around the turn of the year. This is somewhat surprising given that consumer confidence has weakened noticeably, with GfK's headline index falling to its lowest level since late 2023.
Market Sentiment and Economic Factors
Gardner noted that measures of housing market sentiment have also deteriorated. The Royal Institution of Chartered Surveyors reported a sharp decline in new buyer enquiries in March, marking the weakest reading since 2023. This softening is likely influenced by higher market interest rates following the onset of the conflict in the Middle East, along with a more uncertain economic backdrop.
Outlook and Resilience
Looking ahead, Gardner commented that UK economic growth is expected to be somewhat weaker and inflation higher than previously anticipated due to developments in the Middle East. However, the ultimate impact will depend on the duration of the shock and the policy response. He added that the UK economy and housing market have proven remarkably resilient in recent years, providing confidence that if the shock passes relatively quickly and energy prices normalise, any near-term softening in the housing market will be short-lived.
