GDP reading ties in with some surveys suggesting UK plc has kept up momentum despite rising fuel costs

The UK economy unexpectedly grew during the first full month of the Iran war, according to official figures, suggesting the Middle East conflict has not yet affected growth as much as feared.

Figures from the Office for National Statistics (ONS) showed growth of 0.3% in gross domestic product (GDP) in March, from a revised 0.4% rise in February and 0% growth in January. The ONS had originally estimated that the economy grew 0.5% in February and 0.1% in January.

Homebuyers more cautious due to possible mortgage rate rises and higher inflation as sellers sit on properties

Fears of higher mortgage rates and rising inflation as a result of the Middle East conflict are leading to a subdued and downbeat housing market, according to estate agents.

Demand from potential homebuyers across England and Wales has shown a “noticeable softening” recently, according to a monthly survey of estate agents by the Royal Institution of Chartered Surveyors (RICS).

Despite concerns super-rich are leaving due to tax burdens, 88% of those surveyed were proud to live in UK and would pay more to fund public services

Nine in 10 UK millionaires are proud to live in Britain and three-quarters would be willing to pay more tax to ensure public assets get the funding they need, according to research.

Despite widely reported concerns that the wealthy are choosing to leave the country owing to higher taxes, the survey found millionaires were much more concerned about medical workers moving away than wealthy people emigrating.

Dip in credit card spending in April, particularly on travel, suggests Britons preparing for harder times amid Iran war fallout

Households cut back on their spending in April at the fastest pace in 18 months, as the conflict in the Middle East provoked fears of another cost of living crisis, a report from one of the UK’s biggest banks has suggested.

Barclays, which processes nearly 40% of the UK’s credit and debit card transactions, said its data showed there had been a 0.1% fall in card spending last month compared with a year earlier. This was the first year-on-year fall since November 2024.

Monthly rise in prices of fuel and raw materials, driven by Iran war, is one of steepest since survey began in 1997

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Construction companies in the UK are experiencing some of the sharpest cost rises in nearly 30 years as the war in Iran drives up prices for fuel and raw materials, according to a closely watched survey.

The poll of UK construction companies found that input cost inflation – which accounts for expenses such as raw materials, energy and labour – rose last month to the highest level since June 2022 when there was a spike in commodity prices caused by Russia’s invasion of Ukraine.

FTSE 250 firms Paragon and OSB Group, owner of Kent Reliance and Precise Mortgages, slide on London Stock Exchange

• Rachel Reeves considering rent freeze to limit Iran war fallout

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Shares in some of the UK’s biggest buy-to-let lenders such as Paragon and One Savings Bank have fallen after it emerged that the chancellor may make private landlords commit to a one-year rent freeze.

In an effort to protect households from rising living costs as a result of the Iran war, Rachel Reeves is considering whether to ban landlords in England from increasing rents for a limited period of time, the Guardian revealed on Monday night.

But Iran war likely to blow hole in Rachel Reeves’s carefully crafted fiscal ‘headroom’ in coming months

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The UK government budget came in below its annual borrowing target by £700m, official figures show – but the Iran war is likely to blow a hole in Rachel Reeves’s carefully calculated fiscal “headroom” over the coming months.

The government borrowed a net total of £132bn for the financial year ending in March, the Office for National Statistics (ONS) said. This slightly undershot the £132.7bn that the Office for Budget Responsibility (OBR) had forecast just last month.