Nationwide Building Society has released its April House Price Index, providing a fresh snapshot of activity in the UK housing market at the start of spring.
It shows UK house price growth strengthened last month, with annual inflation rising to 3.0% from 2.2% in March.
On a monthly basis, prices increased by 0.4%, indicating a modest increase in market activity.
| Headlines | April-26 | March-26 |
| Monthly Index* | 554.8 | 552.7 |
| monthly change* | 0.4% | 0.9% |
| annual change | 3.0% | 2.2% |
| average price
(not seasonally adjusted) |
£278,880 | £277,186 |
* Seasonally adjusted figure (note that monthly % changes are modified when seasonal adjustment factors are re-estimated)
Nationwide’s chief economist, Robert Gardner, said: “Annual house price growth in the UK increased from 2.2% in March to 3.0% in April. Taking into account seasonal effects, prices rose by 0.4% month on month.
“Despite 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 downturn recorded at the end of the year.
“This is somewhat surprising as indicators of consumer confidence have weakened significantly. GfK’s headline index fell to its lowest level since the end of 2023, reflecting households’ more pessimistic views about the economic outlook and their own financial situation in the year ahead.”
Measures of housing market sentiment have also deteriorated. The Royal Institution of Chartered Surveyors reported a sharp fall in new buyer inquiries in March, pushing the index to its weakest reading since 2023. This softening is likely to be influenced by a more uncertain backdrop as well as higher market interest rates following the onset of the conflict.
Why is the market proving so resilient?
According to Gardner, the relative strength of domestic finances is likely to support the market. Overall, household debt relative to income is at its lowest level in almost two decades, and large savings buffers have been built up in recent years, although these have not been distributed equally across households.
Additionally, housing affordability is steadily improving due to a combination of income growth and a modest decline in mortgage rates compared to increases in home prices by a wide margin in recent years.
“Although market interest rates have risen in recent months, the impact on affordability has so far been limited. Indeed, swap rates, which underpin fixed rate mortgage pricing, are well below the highs reached in 2023 and roughly in line with levels prevailing in late 2024, representing only a partial reversal of earlier gains,” Gardner said.
Where next?
Looking ahead, Nationwide says UK economic growth is likely to weaken somewhat and inflation higher than previously expected as a result of developments in the Middle East, although the ultimate impact will critically depend on the duration of the shock and the policy response.
However, the UK economy and housing market have proven remarkably resilient in recent years. This provides some confidence that, if the latest shock passes relatively quickly, and energy prices normalize in the coming quarters, any near-term softness in the housing market will also prove short-lived.
Industry response:
Verona Frankish, CEO of Yopa: “Despite the rate of monthly house price growth slowing, property values remain higher than this time last month and this time last year.
“This highlights how strong the UK property market is when you consider the broader economic landscape, not to mention global turbulence.
“It is also important to remember that last year’s market was heavily influenced by the rush to secure stamp duty savings before the end of the March deadline and so what we are seeing now is not weakness, but a return to more sustainable conditions.
“Long-term mortgage rates are trending in the right direction, which should continue to support stability as the year progresses.”
Jason Tabb, President of OnTheMarket: “Despite the challenging economic backdrop, the housing market is demonstrating the resilience it is known for. Average prices have increased slightly as concentrated buyers are price-sensitive and negotiating hard, while sellers realize they will struggle to sell higher priced homes.
“Those needing to move are continuing to transact and will be encouraged by lenders cutting their mortgage rates in recent days. The Bank of England’s decision to keep interest rates on hold for another month should also have a continuing impact on market momentum, suggesting stability and no need to panic.
“The increased inventory, as sellers try to take advantage of the typically busy spring market, is giving buyers more choices than in some time and should help keep prices under control.”
James Nightingall of HomeFinder AI: “Buyer activity surged in the first quarter of 2026 but cooled off in early April. Some home seekers took time off simply to enjoy the Easter holidays, but others took this opportunity to arrange a viewing or make an offer. Although buyer interest remains steady overall, the property market has not seen the surge in activity typically associated with spring as interest rates and geopolitical developments continue to fuel uncertainty.”
Nathan Emerson, CEO of PropertyMark: “While the latest Nationwide House Price Index shows that house prices are trending upward, it shows that the market is still significantly affected by constrained supply rather than strong growth in demand. Stock levels remain limited in many areas, meaning even modest levels of buyer activity could put upward pressure on prices.
“From a market perspective, this signals cautious but improving sentiment rather than a fresh bounce. Affordability remains a key constraint, with high mortgage rates restraining the pace of growth. As a result, the market appears to be settling into a low-growth environment, with structural supply issues weighing heavily on pricing.”
Amy Reynolds, Head of Sales at Antony Roberts: “The underlying need to move remains strong and, for well-priced, high-quality homes, demand remains. In terms of pricing, the closer the asking price is to actual market value, the greater the chances of achieving a successful sale. Buyers are not stepping forward to make offers that they do not believe will be accepted – they are simply selecting alternative properties.
“In some price ranges, buyers have the luxury of choice and sellers need to be mindful of this. Although the macroeconomic backdrop may slow the pace of growth, we are seeing a more price-sensitive market where realism and accurate positioning is key.”
Mark Harris, chief executive of mortgage broker SPF Private Clients: “Lenders have continued to cut their mortgage rates, and the Bank of England’s stability in maintaining interest rates should bring a period of calm after much volatility.
“However, borrowers are not taking anything for granted, with many choosing to secure rates in advance of need for peace of mind. Others are keen to move ahead with reserve rates while they have them.”
Ian McKenzie, CEO of The Guild of Property Professionals: “The latest nationwide HPI figures are a clear sign that the housing market is continuing to rebuild momentum after a soft start to the year.
“Although global uncertainty has created a more cautious backdrop, the UK market remains remarkably resilient. The Bank of England’s decision to keep interest rates on hold will help build confidence even if inflation pressures persist.
“Encouragingly, mortgage markets are also showing signs of improvement. Although borrowing costs have experienced some volatility in recent weeks, many lenders are sharpening their pencils and cutting back on their mortgage products. This renewed competition should help further improve buyer sentiment and should support activity in the coming months.”
Tom Bill, head of UK residential research at Knight Frank: “The impact of rising mortgage rates on home prices will be more gradual than sudden as pre-conflict offers work their way through the system, which is why we have modestly lowered our price forecasts for this year.
“Borrowing costs have been volatile in recent weeks, underscoring the high degree of uncertainty over how long the war lasts, the extent to which it escalates and the impact of the second round of contagion on inflation.
“The market is expecting two more bank rate rises this year, but the Bank of England is as uncertain as anyone about what will happen next and seems content to sit on its hands for the time being.”
Benham & Reeves director Mark von Grundher: “While house prices have increased by 3.0% year-on-year, performance so far this year has been relatively modest, reflecting a market that is moving forward, but without the urgency seen in previous years.
“However, this should not diminish the underlying strength of the market. Buyer demand remains, transactions are being completed and with yesterday’s decision by the Bank of England to maintain the base rate, many home buyers will feel confident committing to a purchase.
“This will help maintain a steady level of activity in the coming months.”
Chris Hodgkinson, managing director of the House Buyer’s Bureau: “Although home prices have increased, the ground reality is that the market remains stagnant. Buyer demand has waned, sellers are sitting in the market for longer periods and we are seeing more transactions declining as uncertainty continues to dominate sentiment.
“This gap between price growth and market activity highlights the fragile nature of current conditions and, without a meaningful improvement in affordability, it is likely that this low level of performance will continue in the near term.”
Isley Robinson, CEO of Enness Global
“The resilience seen in house price growth is remarkable given the current geopolitical backdrop, but at the top end of the market, global uncertainty has inevitably led some international buyers to adopt a more cautious stance.
“That said, the UK continues to be seen as a stable and attractive destination for capital. For high net worth investors, real estate here offers long-term security and relative value, and while activity may be more selective in the short term, confidence in the UK as an investment avenue remains strong.”