Building society lending hold steady
Commenting on the lending figures, Adrian Coles, BSA Director-General, said: “Modest improvements in the housing market have occurred in recent months, especially when compared to the start of the year, however lending still remains subdued compared to previous years. Funding conditions remain difficult and the supply of properties to the market is low, frustrating any increase in demand for house purchase. Lending activity is likely to remain depressed until funding and supply conditions improve.”
The figures show (not seasonally adjusted):
- Building society gross lending was £1,666 million in October 2009 compared to £3,105 million in October 2008;
- Net lending by building societies was -£521 million in October 2009 compared to £394 million in October 2008;
- Mortgages approved by building societies in October 2009 amounted to £1,511 million compared to £2,902 million in October 2008.
It is difficult to make direct comparisons with previous years’ data as Britannia merged with Co-operative Financial Services in August 2009, after which Britannia is no longer classified as a building society.