Society lending up 15 per cent

The figures released by the Building Societies Association showed:

? Building society gross lending amounted to £1,815 million in December 2009 compared to £2,312 million in December 2008.

? Approvals in December 2009 were £1,038 million compared to £901 million in December 2008.

Commenting on the lending figures, Paul Broadhead, BSA head of mortgage policy, said: “Whilst it is encouraging to see an increase in gross lending at the end of the year when activity would typically decline, we believe it is likely that this rise can be attributed to a rush from buyers keen to complete transactions before the year end in order to beat the removal of the stamp duty holiday. Despite this rise, total gross lending in 2009 was only half of that in 2008 and it is likely to remain at low levels until funding conditions improve.”