UK house prices stall as IMF warns energy shock and AI boom threaten growth

The UK housing market has effectively paused, with Lloyds Banking Group reporting flat prices and an average home value of £298,441. Andrew Asaam of Lloyds said mortgage rates remain elevated, yet consumer spending is holding up better than expected, keeping underlying demand alive and pushing buyer enquiries to a February peak. In a separate address, IMF chief Kristalina Georgieva highlighted a dual threat to the global economy: an energy supply shock linked to the Middle East conflict and a rapid AI-driven demand surge that is feeding inflation.

She added that soaring government debt, especially in the United States and other advanced economies, further strains growth prospects. Financial markets reflected mixed reactions, with US equity indices hitting record highs while Asian shares slipped and oil prices rebounded above $100 a barrel. The convergence of these factors suggests modest house-price movement in the UK and heightened uncertainty for economies worldwide.