LONDON (ShareCast) - Nationwide reported on Monday a decline in UK mortgage lending, signalling a further slowdown in the housing market.

Mortgage lending fell 9% to £5.8bn in the three months to 30 June.

It marked the first drop since the housing bubble burst in 2008, as stricter mortgage lending rules curbed demand.

However, the report showed underlying profit before tax was up by 117% to £253m, against £121m in the same period last year, as margins improved seven basis points from the year-end run rate of 1.40% to 1.47%.

Nationwide's chief executive, Graham Beale, said: "Nationwide has continued to help members to save, buy their own homes and manage their money in a way that suits their needs. As a result, member deposits increased by £1.5bn, we grew our share of current accounts to 6.4% and we supported the housing market, helping over 23,000 people to buy their home, with gross mortgage lending of £5.8bn."

The data from Nationwide comes after Rightmove said house prices declined 2.9% in early August compared to a month earlier.

JF

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