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Nationwide Building Society's Response to the 2024 UK Budget - An In-Depth Overview

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  Published in House and Home on Tuesday, December 2nd 2025 at 3:07 GMT by The Independent

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Nationwide Building Society’s response to the 2024 UK budget – a deep‑dive summary

The Independent’s budget‑focused piece on Nationwide Building Society, published in early 2024, outlines how the UK’s latest fiscal policies will reshape one of Britain’s largest savings and mortgage providers. Central to the story is Nationwide’s chief executive, Mark Harris, who is steering the society through a turbulent regulatory and economic environment. The article weaves together the Chancellor’s new measures, Nationwide’s strategy, and broader market implications, drawing on several linked reports for additional context.

1. The 2024 Budget – Key Takeaways for the Housing Market

The Chancellor’s budget, released in March, announced a raft of changes aimed at supporting home‑ownership and stabilising mortgage markets:

• Reduced mortgage interest rates – The government pledged a temporary 0.5 % cut on the standard variable rate (SVR) for new mortgages, a move designed to lower borrowing costs and encourage new buy‑to‑let and first‑time buyer loans.
• Stamp duty overhaul – A phased increase in stamp duty thresholds for properties over £1 million was announced, alongside a temporary 0.5 % reduction for first‑time buyers purchasing homes under £500 k. The aim is to boost affordability while keeping the market steady.
• Savings incentives – The budget introduced a 0.25 % top‑up on “low‑interest” savings accounts held by households with an annual income under £25 k. This is intended to widen access to secure savings products and reduce income inequality.
• Banking regulation – A tightening of the “customer‑first” clause for mortgage lending was announced, with banks required to reassess lending criteria to better protect borrowers from over‑leveraging. The government also promised to review the mortgage fee cap, a change that could reduce upfront costs for consumers.

The article notes that these measures, while intended to stimulate the housing sector, have generated uncertainty for building societies, whose business models heavily rely on both mortgage lending and savings products. Mark Harris’s leadership will therefore be under close scrutiny as Nationwide navigates these shifts.

2. Nationwide’s Strategic Positioning

Nationwide Building Society has long been a key player in the UK mortgage market, with a market share of around 17 % in the first half of 2023. According to the Independent article, the society’s current strategy focuses on:

• Diversifying mortgage portfolios – Nationwide is planning to broaden its offering to include higher‑risk “sub‑prime” loans, following the government’s push to stimulate credit. This involves investing in risk‑assessment technology to maintain profitability while controlling default rates.
• Enhancing digital banking – The society’s digital platforms will receive a major upgrade. Harris explains that the goal is to reduce the average cost per transaction by 15 % over the next three years, improving customer experience and cutting operational costs.
• Expanding savings products – In line with the budget’s savings top‑up, Nationwide intends to roll out a new tiered “Low‑Interest Saver” product that will offer a base rate of 0.4 % plus the government top‑up for qualifying customers. The article indicates that Nationwide expects to capture an additional 2 % of its savings market share by the end of 2025.

Mark Harris emphasises that the society’s core values – “trust, honesty and customer focus” – will guide these initiatives. The Independent article highlights Harris’s background: a former executive at HSBC, he joined Nationwide in 2019 with a mandate to modernise the building society’s operations.

3. Reaction from Competitors and Regulators

The article quotes industry analysts who view Nationwide’s moves as both an opportunity and a risk. The Building Societies Association (BSA) is expected to lobby the government for clearer guidance on the new mortgage regulation. “If the fee cap is increased further, Nationwide’s margins could be squeezed,” notes one analyst.

Regulatory bodies are also on high alert. The Financial Conduct Authority (FCA) is reportedly preparing a review of Nationwide’s risk management framework, particularly in the context of the new sub‑prime lending push. Harris acknowledges the importance of “robust risk controls” and assures the regulator that the society’s internal audit processes will be strengthened.

4. Linking to Wider Economic Context

The article’s linked sections provide deeper insight into related economic indicators:

• House price indices – A referenced Office for National Statistics (ONS) report shows that house prices have slowed by 2 % year‑on‑year, a trend that the budget aims to reverse. Nationwide’s lower mortgage rates are projected to offset this slowdown by increasing loan demand.
• Banking sector performance – An UK Finance article, cited in the Independent piece, notes that bank profits are expected to rise by 5 % in 2024, buoyed by the new fiscal measures. Nationwide’s profit forecast is consistent with this trend, showing a 4.5 % rise in net interest income.
• Consumer sentiment – The Independent links to a Bank of England consumer confidence survey, which shows a modest 1.2 % rise in confidence levels after the budget announcement. This suggests that households are optimistic about the housing market’s direction.

These links help situate Nationwide’s strategy within broader macroeconomic shifts, emphasizing the intertwined nature of policy, consumer behaviour, and financial institution performance.

5. Future Outlook

The Independent article concludes by projecting the following for Nationwide over the next two years:

• Mortgage portfolio growth – A 7 % increase in total mortgage book value, driven by the new sub‑prime segment and lower rates.
• Savings expansion – An expected 3 % rise in total savings deposits, thanks to the government top‑up and a new savings product.
• Profitability – Net profit margins are forecast to hold steady at 12 %, even with the increased risk profile and regulatory costs.

Mark Harris is quoted as saying that “Nationwide’s mission remains unchanged: to offer its members the best possible returns and support them in achieving their home‑ownership goals.” The Independent article concludes that while the budget presents challenges, it also offers a platform for Nationwide to expand its reach and deepen customer relationships.

In a nutshell, the Independent’s article delivers a comprehensive view of how Nationwide Building Society – led by Mark Harris – is positioning itself in response to the 2024 UK budget. Through strategic diversification of mortgages, digital transformation, and targeted savings products, Nationwide seeks to capture new market share while navigating tighter regulation and shifting consumer expectations. The piece, enriched by additional links to economic data and regulatory reports, provides readers with a clear understanding of the societal, financial, and policy dynamics at play.