The building society sector continues to strengthen its position in the mortgage and savings markets, delivering growth that outpaces their share of balances, figures from the Building Societies Association show.
In the six months to September, building societies and the two mutual-owned banks increased their mortgage balances by £7.5 billion, to £493 billion, and grew cash savings balances by £8.8 billion, to £496 billion.
Building societies and mutual-owned banks hold 29% of the UK’s outstanding mortgage balances yet provided 32% of the UK’s net lending in the period. More than 220,000 new mortgages were approved, representing 31% of all market approvals. In the six months to September, they provided 59,8612 mortgages to first-time buyers.
Robin Fieth, chief executive of the Building Societies Association said: “Consumers are increasingly looking for providers that offer long-term value, fairness and inclusive access to services in their communities. These latest figures show that building societies continue to meet that demand, supporting people to buy their first home and helping households build their financial resilience.
“As member-owned organisations, our focus is on delivering real benefits to consumers and ensuring that value stays within local communities rather than being directed to external shareholders.
“While banks retreat from high streets and cut the local services communities rely on, building societies are doing the opposite – not only are they keeping branches open, but they are investing in them and opening new ones.
“Last week we launched the Building Society Sector Growth Plan, which called on government and regulators to drive capital reforms that would unlock the full potential of the sector. These changes will enable building societies to help even more people to buy their own home, safeguard their savings and strengthen communities across the UK. We’re not asking for special treatment, just recognition of the vital role building societies play in ensuring the UK has a diverse and competitive financial services market and the ability to realise the full potential of the sector.”
