Nationwide warns that housing prices will remain stable for the rest of the year

Slump: Nationwide suffered a 12% drop in first-quarter earnings, reveals its latest results

Nationwide reveals fall in earnings and warns that housing prices will remain stable for the rest of the year in the middle of a "submissive" market.

  • The statutory profits of the first quarter of the lender decreased by 12% to £ 281m
  • Building society said that people were responding to the pressure on available cash

Jane Denton for Thisismoney

The & intense competition & # 39; and a slow housing market slowed the latest quarterly Nationwide results.

The construction company registered a 12 percent drop in first-quarter profits to £ 281 million, down from £ 322 million at the same point a year ago.

Nationwide said it expects the UK housing market to remain "relatively subdued" for the rest of the year, with home prices unchanged.

Slump: Nationwide suffered a 12% drop in first-quarter earnings, reveals its latest results

Slump: Nationwide suffered a 12% drop in first-quarter earnings, reveals its latest results

In May, the lender said that the & # 39; fierce & # 39; Competition in the UK mortgage market weighed on the growth of loans and profits, and said that growth would likely remain weak for the foreseeable future.

In this last quarter, while gross mortgage loans increased by 3.7 percent to £ 8.4 billion, Nationwide said it was seeing an increasing number of consumers adapting their behaviors in response to pressure on disposable income. "

Joe Garner, chief executive of Nationwide, said: "Our outlook has not changed since the full year, and we expect the economy to grow at a modest pace over the next 12 months.

"We observed that consumers adapt their behaviors in response to the pressure on disposable income."

"The housing market seems to remain relatively low, with housing prices broadly flat in 2018. In this context, we also expect intense competition to persist in our core markets."

During the first quarter, 186,900 new accounts were opened with Natwionwide, a decrease of 202,000 a year ago.

Deposit balances grew by £ 4.2billion thanks to a strong performance of Individual Savings Accounts, which include the Loyalty Isa and the Single Access Isa Access, which is no longer available, offering an interest rate of 1.4 percent.

Predictions: Nationwide said it expects the real estate market to remain "relatively low"

Predictions: Nationwide said it expects the real estate market to remain "relatively low"

Predictions: Nationwide said it expects the real estate market to remain "relatively low"

Nationwide said it remained committed to its efficiency program, which aims to save up to £ 300 million by 2022, and will provide an update on the progress in its interim results in November.

Last week, the Monetary Policy Committee of the Bank of England raised interest rates from 0.5 percent to 0.75 percent.

In response, Nationwide said it would increase its tracking mortgage interest rates and savings rates by 0.25 percentage points from September 1.

Ad

(function() {
var _fbq = window._fbq || (window._fbq = []);
if (!_fbq.loaded) {
var fbds = document.createElement(‘script’);
fbds.async = true;
fbds.src = “http://connect.facebook.net/en_US/fbds.js”;
var s = document.getElementsByTagName(‘script’)[0];
s.parentNode.insertBefore(fbds, s);
_fbq.loaded = true;
}
_fbq.push([‘addPixelId’, ‘1401367413466420’]);
})();
window._fbq = window._fbq || [];
window._fbq.push([“track”, “PixelInitialized”, {}]);
.