Nationwide Building Society

Not a good week for Nationwide....

BBC personal finance reporter tweets...

Property market has 'slow puncture'

Commenting on those downbeat house price figures from the Nationwide, Jonathan Samuels of Octane Capital said:

The property market is usually buoyant in June but political events have taken the pressure out of it like a slow puncture. If it weren’t for rock-bottom mortgage rates, the strength of the jobs market and low supply, the market would likely be showing negative growth.

House price growth remains subdued

For sale signs
Getty Images

House prices inched up 0.1% last month, or 0.5% over the year, according to the Nationwide.

"Housing market trends are likely to continue to mirror developments in the broader economy," said Robert Gardner, Nationwide's chief economist.

"While healthy labour market conditions and low borrowing costs will provide underlying support, uncertainty is likely to continue to act as a drag on sentiment and activity, with price growth and transaction levels remaining close to current levels over the coming months."

Prices fell in London for the eighth quarter in a row, the building society said.

Today's papers: Kier and Sotheby's dominate

Today's business papers
BBC

The news that Sotheby's has been bought by a French billionaire dominates today's business sections.

The Guardian reports: "Sotheby's to go private again after it accepts $3.7bn takeover", while the FT leads with: "Sotheby's snapped up by French billionaire Drahi in $3.7bn deal".

Kier's turnouround plan also gets top billing in today's papers with The Times reporting: "Troubled Kier plans to cut 1,200 jobs" and the FT's Companies & Markets section leading with: "Kier axes 1,200 jobs and sells assets".

But The Times leads its business section with "Nationwide chief paid £500 a day in expenses". The paper has scanned the mutual's latest annual report to discover that boss Joe Garner was handed £185,000 in perks during the 12 months to 4 April.

Bricks thrown at police after failed ram-raid

Allen Cook

BBC News

Two police officers have been hurt after chasing a gang who tried to ram-raid a cash machine early this morning.

Nationwide branch on Stratford Road, Shirley
Google

West Midlands Police said officers were responding to reports of a burglary at a building society on Stratford Road, Shirley, Solihull, just after midnight.

Local councillor Mark Parker tweeted that the Nationwide branch had been targeted.

Two vans and a car were used to ram the building but offenders drove off without the ATM.

The force said when police pursued them, the vehicles stopped and a man got out of one and threw bricks at officers' car, smashing its windscreen.

One of the vans then rammed the police car, leaving officers with minor injuries as the gang made off.

Nationwide handed £50m to invest in small business banking

Nationwide branch
Getty Images

Nationwide Building Society has won a £50m share of a fund aimed at boosting competition in the business banking sector.

The building society said the award will help boost its launch into business banking.

Joe Garner, chief executive of Nationwide, said: "While the money is a massive boost for our plan, we also aim to match every pound of the £50 million award with our own funding over a five-year plan."

The Co-operative Bank and Investec Bank also won smaller awards of £15m each in the second round of a £775m programme funded by Royal Bank of Scotland to increase competition in business lending.

The fund was launched as a condition of RBS's bailout at the height of the financial crisis.

House price growth subdued

house signs
PA

Nationwide has published its house price barometer. April marks the fifth month in a row in which annual house price growth has been below 1%.

Robert Gardner, Nationwide's Chief Economist, said: “UK house price growth remained subdued in April, with prices just 0.9% higher than the same month last year.

“Indicators of housing market activity, such as the number of property transactions and the number of mortgages approved for house purchase, have remained broadly stable in recent months, even though survey data suggests that sentiment has softened".

No payments from building society

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Manchester Building Society

Manchester Building Society says it will not make a payment on its permanent interest bearing shares - Pibs, a kind of bond that allows building societies to raise funds.

It needs to "conserve capital", the society said, and that it had previously said it would not be able to make the payment.

The board continues to discuss and consult with the Prudential Regulation Authority - the Bank of England's regulatory arm - with regard to its capital position, the society said.

"There is uncertainty over the society's ability to make Pibs coupon payments due after April 2019. Any further non-payment will be announced to the market," it said.