Thanks for joining me. House prices rose unexpectedly last month despite the Iran war increasing the likelihood of higher interest rates this year.

Property values jumped by 0.4pc during April to £278,880, according to Nationwide.

Analysts had expected prices to fall by 0.3pc last month after consumer confidence was hit by the Iran war.

House prices were up 3pc compared to the same month last year, well ahead of forecasts for 2.2pc and up from 2.2pc in the 12 months to March.

Robert Gardner, chief economist at Nationwide, said the figures were “somewhat surprising given that indicators of consumer confidence have weakened noticeably”.

He said: “Despite the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices, the UK housing market has continued to regain momentum following the slowdown recorded around the turn of the year.”

House prices have risen despite money markets ramping up bets on the Bank of England raising interest rates this year to combat an expected rise in inflation.

On Thursday, the Bank kept rates at 3.75pc but warned inflation could rise above 6pc. Here is what you need to know.

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What happened overnight

Shares rose in Asia, although most markets in the region were closed for May Day holidays.

Brent crude’s price rose 67 cents to $111.07 per barrel while US benchmark crude oil added 10 cents to $105.17 a barrel.

Prospects for a deal to cement a three-week ceasefire in the Middle East conflict remained clouded as Iran’s supreme leader said it will protect its nuclear and missile capabilities as a national asset.

The war’s shocks to oil supplies and prices are putting pressure on Donald Trump, who was floating a new plan to reopen the Strait of Hormuz, a critical passageway for oil and gas exports from the Middle East.

In Tokyo, the Nikkei 225 gained 0.7pc to 59,678.31 as the Japanese yen gained against the US dollar.

On Wall Street stocks ended the day higher as investors digested a raft of economic data and the price of oil eased back from a four year high.

Figures released on Thursday showed that the US economy grew by 2pc in the first three months of 2026, while the nation’s jobless claims fell to their lowest level since 1969.

The economic data and strong corporate earnings caused shares to climb in New York.

The S&P 500 rose 1pc on Thursday and recorded a monthly gain of 10.4pc - its largest in more than five years.

The Nasdaq closed 0.9pc higher and rose 15.3pc during April. The Dow Jones Industrial Average added 1.6pc in the last trading session of the month.