UK housing prices and mortgage approvals show resilience despite economic headwinds

According to the Nationwide Building Society, UK house prices rose by 0.4% in April, marking the fourth consecutive month of growth and surpassing expectations of a 0.3% decline. Prices are currently 3% higher than a year earlier. Meanwhile, Bank of England data indicates that mortgage approvals reached 63,531 in March, the highest level since November. Consumer lending also experienced its fastest annual growth rate in over two years at 8.9%. These figures contrast with reports from Halifax, which recorded a 0.5% drop in house prices for March. Economists note that while household finances remain robust with low debt levels, rising interest rates and conflict-related energy cost increases pose risks to future momentum. Analysts project that two-year fixed-rate mortgage costs may rise to 4.8% in the coming months. Consumer confidence is currently at its lowest level since 2023.