In April, UK house prices unexpectedly rose by 0.4%, contrary to economists' predictions of a decline. This increase brought the annual growth rate to 3.0%, up from 2.2% in March, with the average house price now at £278,880. Nationwide Building Society, the UK's largest building society, attributed this resilience to a recovering housing market despite declining consumer confidence and the economic impact of the ongoing conflict in the Middle East, which has led to higher oil prices. Robert Gardner, Nationwide's chief economist, noted that the housing market is regaining momentum despite the uncertain economic climate. Meanwhile, NatWest Group reported a profit of £1.4 billion for the first quarter of 2026, even as it set aside an additional £140 million to prepare for potential economic downturns. The bank's CEO, Paul Thwaite, highlighted strong performance across its businesses, driven by increased customer activity and productivity improvements through AI. However, analysts caution that the current strength in house prices may not be sustainable, given the rising mortgage rates and economic pressures.