House prices rose 0.4% in April after a 0.9% increase ​in March, in contrast to economists’ expectations in a ​Reuters poll for a 0.3% drop.

Prices were ⁠3.0% higher than a year earlier, faster than the expected ​2.2% growth.

“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,” Nationwide chief economist Robert Gardner ​said.

“This is somewhat surprising given that indicators of consumer confidence have weakened ‌noticeably,” ⁠he added.

Financing costs driving British mortgage rates have risen since the start of the Iran war to their highest since late 2024, and consumer sentiment has fallen to its lowest since 2023, according ​to GfK’s long-running ​survey.

Property surveyors ⁠reported weaker buyer demand in March and the broadest decline in house prices since January ​2024.

Gardner said demand for now appeared to ​be supported ⁠by strong household finances - debt levels are the lowest relative to income in around 20 years - and by household income ⁠growth ​having outpaced house prices in recent ​years.

Rival mortgage lender Halifax had reported a 0.5% fall in house prices in March.