Nationwide posts bumper year after stamp duty rush
Nationwide Building Society bolstered its takings in the 12 months to March 31 2025, after a rush to beat the stamp duty deadline led to a surge in first-time buyers.
The firm said it served more first-time buyers than any other lender in the UK, with 120,000 purchasing their first home. This was a significant leap from 64,000 in the previous period.
The jump came after Chancellor Rachel Reeves slashed the stamp duty threshold for first time home buyers to £300,000 from £425,000.
As Brits flocked to beat the tax hike, Nationwide’s underlying income increased to £5.2bn, up from £4.7bn for the previous 12 months.
This helped pre-tax profit increase nearly £500m to £2.3bn for the period.
But the mutual battled rising costs, which increased to £3.2bn from £2.5bn. The firm cited costs following its takeover of landmark Virgin Money last March.
Nationwide’s £2.8bn acquisition of the then FTSE 250-listed lender was completed at the start of October, forming the UK’s second-biggest retail banking provider, beating Natwest but falling into second place to Lloyds Banking Group.
The firm said costs following the takeover topped £689m, citing “planned, short-term investment to improve customer experience”.
Nationwide returned £2.8bn to customers
Unlike listed banks, building societies offer better rates on savings and loans to distribute excess capital, as opposed to dividends and buybacks. The company recorded a record £2.8bn in value returned to customers.
Debbie Crosbie, Nationwide chief executive, said the firm was “well placed” to support customers despite economic activity.
Crosbie said the “pace of UK economic activity has remained subdued and is likely to improve only gradually”.
“Solid labour market conditions, resilience in real earnings and lower interest rates should support housing market activity and growth in deposits.”
Whilst the global economic outlook remains “highly uncertain,” she said UK households and UK-focused businesses were “generally well placed for shocks.”
Kevin Parry, chairman of Nationwide, said: “The acquisition of Virgin Money represented a significant strategic advance for Nationwide. It will bring the benefit of mutuality to more individuals and to business customers.”