UK housing market slows as Iran war hits demand, Halifax data shows

LONDON - British house prices fell in April from March as concerns about the impact of the war in Iran hurt buyer demand and they rose by the least in annual terms since December, figures from mortgage lender Halifax showed on Friday.

Halifax said house prices dipped by 0.1% in April after dropping by a monthly 0.5% in March, and were just 0.4% higher than a year earlier.

In March, prices rose by an 0.8% in annual terms.

The median forecast in a Reuters poll of economists had predicted a monthly house price fall of 0.1% in April and an annual rise of 0.6%.

"After a strong start to the year, recent global developments have added a greater degree of uncertainty to the outlook," said Amanda Bryden, head of mortgages at Halifax.

"In particular, higher energy prices have fed into inflation expectations, prompting markets to reassess the path for interest rates – a shift that has already pushed up borrowing costs for many buyers."

The Bank of England kept borrowing costs at 3.75% last week and investors on Thursday were pricing in two quarter-point increases in rates by the end of 2026.

(Reporting by Suban AbdullaEditing by William Schomberg)

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This story was originally published May 7, 2026 at 11:27 PM.