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

LONDON, May 8 (Reuters) - ​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.