UK house prices expected to remain 'broadly stable'

Landlord Expert
By Landlord Expert May 28, 2010 11:16

UK house prices have recovered some ground in recent months, though prices fell in February and April, according to lender Halifax, raising questions over the strength of a recovery.

Data from Nationwide itself, Britain's third-largest mortgage lender, showed a 1pc rise in April and took the annual rate of increase into double digits for the first time in nearly three years.

Nationwide, reporting its results for the year to April 4, said it had been hit by the contraction in its core mortgage and savings markets and by pressure on margins. Underlying profits almost halved to £212m, and the lender warned it saw lower levels of profitability continuing throughout 2010.

It lent £12bn of mortgages over its past financial year, representing a market share of 8.7pc, down slightly from 9pc a year before. The lender said it had no "aggressive growth plans" and expected to remain around that level.

The building society said on Wednesday it plans to accelerate cost cuts in order to hit a targeted cost income ratio of less than 50pc by the end of 2012/13, and will review its distribution network and property portfolio.

Beale declined to comment on potential staff cuts and said the review currently underway would take "months not weeks".

Arrears remained broadly flat at 0.68pc, with residential arrears expected to remain stable. Bad debts on the commercial property portfolio saw a "significantly better" second half, but the lender warned a slower economic recovery and weak tenant demand could still throw that off track.



Landlord Expert
By Landlord Expert May 28, 2010 11:16

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