Nationwide has predicted that total mortgage lending will slump 30%, from £100 billion to £70 billion, this year as the housing market slows down. The building society’s chief executive Philip Williamson said that prices will remain flat for two years and this will have a knock on effect in the mortgage market as homeowners become less likely to release equity from their homes. Williamson said: “We expect there to be a soft landing with lower levels of economic growth impacting on the housing and lending markets during 2005.” He added: “We think that house prices will rise between 0% and 2% for this year and that the trend will remain flat for two years.” His comments followed the announcement that profits at the group were up to £517.1 million for the year to April 2004, compared with £426.8 million the previous year. Net mortgage lending fell to £10.9 billion down from £13.2 billion, though profits from mortgages taken out in previous years helped to lift the business. (Times, Independent, Telegraph, Guardian)