Nationwide has warned that house prices will stay flat for the rest of the year as the stagnant housing market continues to weigh on the lender’s profits.
The UK’s largest building society said its pre-tax profits for the three months to June had fallen 13pc to £281m amid a “subdued” housing market, fierce competition and squeezed UK households.
“We are observing consumers adapting their behaviours in response to the pressure on disposable income,” chief executive Joe Garner said.
“The housing market looks set to remain relatively subdued with house prices broadly flat in 2018. Against this background, we also expect intense competition to persist in our core markets.”
His downbeat forecast…