fbpx

Society savings inflows highest for eight years

Amanda Jarvis

January 20, 2006

The BSA found that:

– Building societies had net inflows of £1,138m up from £998m in December 2004.

– Building society net receipts to cash ISAs were £38m in December 2005.

– Building society gross advances amounted to £3,614m in December 2005, compared to £3,108m in December 2004.

– Net advances were £828m in December 2005, versus £907m in December 2004.

– Approvals (loans agreed, but not yet made) were £3,154m in December 2005 up from £2,572m in December 2004.

Adrian Coles, director-general of the BSA, said of the savings market: “Net savings inflows in 2005 were the highest since 1997 and the second highest since 1988. Clearly people trust building societies to offer good value and a safe home for their savings. Overindebtedness grabs the headlines, but these figures show that many people are sensibly looking after their future.”

On the mortgage side, Mr Coles said: “There were major concerns expressed by some commentators at the end of 2004 about the long-term health of the market. 2005 has been the year in which we have learnt that a soft landing is achievable. Looking forward, in 2006 we expect a steady, benign market, with house price inflation no longer a general concern. With the wide range of mortgage products available and no letting up of competition in the market, there will be some good deals for house buyers this year.”


Sign up to our daily email