House prices in the U.K. declined slightly in April after staying flat in the previous month, results of a survey by the Nationwide Building Society revealed on Wednesday,
The mortgage lender expect activity levels to strengthen in the coming months supported by the government's revised credit scheme. The modest drop in prices was in contrast to expectations for an increase.
The house price index slid a seasonally adjusted 0.1 percent from March, when they recorded no change. Prices were forecast to rise 0.3 percent. A typical U.K. home is now worth GBP 165,586.
"There is some evidence that activity and prices have gained some momentum in recent months," Nationwide Chief Economist Robert Gardner said.
"The number of mortgage approvals has edged up from the levels prevailing last year and there are reasons for optimism that activity levels will continue to strengthen in the months ahead."
The government's Help to Buy program as well as the Bank of England's Funding for Lending Scheme are widely expected to provide more support to the property market in the coming months.
The British economy dodged a triple-dip recession in the first quarter with the gross domestic product expanding 0.3 percent sequentially, underpinned by an expansion in the service sector, preliminary figures from the Office for National Statistics revealed last week.
During the three months ended April, house prices advanced 0.5 percent from the preceding three-month period, when they increased by 0.6 percent.
Compared to April 2012, prices rose 0.9 percent, after recording a 0.8 percent gain in March. Economists were looking for a 1.3 percent annual increase for April.
The annual growth in prices is in line with recent data from various surveys showing that house prices have been pushed up by the steady increase in prices in London.
Mortgage firm Hometrak on Monday said properties in London were sold at the fastest pace in more than five years in April, while house price growth across the U.K. and the capital city remained at three-year high.
Another survey by the Land Registry showed that house prices in England and Wales increased modestly in March, with London recording the biggest increase in average property values over the last twelve months.
In a survey published earlier this month, Rightmove said British house prices increased for a fourth consecutive month in April. The agency also noted that growing demand in the market is not matching the supply of new properties coming up for sale.
A recent report from the Bank of England showed that the number of mortgages approved for house purchases in the U.K. increased more-than-expected to 53,504 in March from 51,947 in February. The value of lending secured on dwellings, however, increased at a slower rate.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.