BSA announces robust market
– Building society gross advances amounted to £3,891m in November 2005, compared to £3,283m in November 2004.
-Net Advances were £960m in November 2005, up from £800m in November 2004.
-Approvals (loans agreed, but not yet made) increased to £4026 in November 2005 from £2,999m in November 2004.
-In the savings market, building societies had net inflows of £767m compared to £665m in November 2004.
-Building Society net receipts to cash ISAs were £67m in November 2005.
Commenting on the savings market, Adrian Coles, director-general of The Building Societies Association, said:
“Building society savings increased by 25% between November 2003 and November 2005. This is perhaps evidence of the growing acceptance by people that they need to save, so they have something to fall back on in case hard times hit. Cash savings not only pay for unforeseen expenses such as the car breaking down or the roof springing a leak, but also form part of a balanced portfolio to ensure a comfortable retirement.”
On the mortgage side, Mr Coles said:
“After the doubts about the health of the housing market expressed by some commentators earlier this year, the latest figures show a robust market. Loans advanced by building societies are up almost 20% year-on-year and approvals, loans promised but not yet made, are up by over a third. The housing market has clearly recovered from the effects of the sharp increase in interest rates which peaked at 4.75% in August 2004.”