Government put reductions in expenditures outside buyers, warns the Nationwide House prices continue to fall in the near future, the strengthening of the national society has suggested.The lender said buyers were be discouraged by uncertainty generated by reductions in public expenditure of the Government.
However he said price falls is not as great as in 2008 because of low limit property interest rates and mortgage arrears.
The company saw its half profits rise from 81% to 259 million from £.
"On the housing market conditions have weakened significantly over the last six months, with the demand of the purchaser and a downward trend modest houses prices," said Chief Executive Graham Beale Nationwide.
Low interest ratesPrice of the room have declined since the summer.
Continue reading that the main storyahead not any change in the base rate of the Bank of England until late 2011 "end quote Graham Beale National Chief Executive of the national own monthly survey showed recently had dropped by 3% since June and were slightly higher than they were a year ago."
In spite of the stagnation of real estate market, the finances of the Nationwide have improved during the first half of 2010.
Increase of profits in half were inflated by a one-time benefit of financial derivatives to cover against adverse interest rate movements.
But the value of bad debts on residential mortgage company fell by 44% to 179 million from £.
Only 0.67% of the national mortgage loans were three months or more late, which, it was less than one third of 2.15% industry average.
The company also expressed interest rates would remain low for another year.
"The Bank of England is likely to maintain interest rates at record low levels further offset the dampening effect of spending cuts," said Mr. Beale.
"We expect any change in the rate base of the Bank of England until late 2011, despite inflation remains above target Government."
Bank loansGross mortgage banks United Kingdom - total lent before taking into account the capital repayments effect - was just £ 7. 6bn in October.
The British Bankers' Association (BBA) said it was total lowest since February 2001 and was 16.1 per cent less than in October last year.
"Activity of consumer credit markets continued to be mastered in October reflecting uncertain prospects for households and the lowest consumer confidence and mortgages" said statistical BBA, David Dooks Director.
The number of bank mortgages approved for house purchase, but not yet Terp, slight decrease 31,058 30,766 October September.
That was the average monthly figure for the preceding six months 33,914 and suggests housing market activity will remain subdued in the coming months.
