Media Centre
Press release
CONTINUED HOUSING MARKET UNCERTAINTY KEEPS MORTGAGE APPROVALS LOW
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Contact: Neil Johnson Date: 29 Sep 2008 |
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Continued uncertainty in the housing market saw net approvals by building societies in August remain low at £2.8 billion, a 31% decline compared to August 2007 as buyers continue to remain away from the market.
Commenting on the figures, Andrew Gall, Business Economist at the BSA said:-
“Activity in the housing market remains depressed, so, although the figures for both net approvals and net lending are better than for last month, they still remain low. With the Land Registry data showing a 4.6% annual drop in property prices, and with BSA’s own Property Tracker survey showing that more than half of people consider the prospect of future falls in house prices a barrier to house purchase, it is hardly surprising that demand for mortgages is so low.”
Turning to the savings figures, Mr. Gall said:-
“The excellent products and attractive savings rates offered by building societies mean that savers are continuing to view societies as a tried and trusted home for their money in these turbulent and uncertain times.”
Building society statistics August 2008
- Building society gross lending amounted to £2,770 million in August 2008 compared to £4,277 million in August 2007.
- Net lending by building societies in August 2008 was -£38 million compared to £771 million in August 2007.
- Approvals in August 2008 were £2,781 million compared to £4,054 million in August 2007.
- Building societies had net receipts of £708 million in August 2008 compared to £1,389 million in August 2007.
- Building societies had net withdrawals of £269m from Cash ISAs in August 2008, compared to net receipts of £124m in August 2007.
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CONTACT: Neil Johnson
DIRECT LINE: 020 7520 5903
NIGHT/WEEKEND: 07908 764549
EMAIL: neil.johnson@bsa.org.uk
Lending table
Funding table
The Building Societies Association (BSA) represents all 59 building societies in the United Kingdom. Building societies have total assets of over £360 billion and, together with their subsidiaries, hold residential mortgages of £250 billion, more than 20% of the total outstanding in the UK. Societies hold about £230 billion of retail deposits, accounting for more than 20% of all such deposits in the UK. Building societies also account for about 38% of all cash ISA balances. Building societies employ over 51,500 full and part-time staff and operate through more than 2,000 branches.
Photographs of Andrew Gall are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
Detailed statistical information can be found on the accompanying spreadsheets.
Further details of the Land Registry data can be found at http://www.landregistry.gov.uk/ and BSA’s Property Price Tracker can be found at http://www.bsa.org.uk/mediacentre/press/property_tracker_sept08.htm
A list of all building societies can be found on the BSA website at http://www.bsa.org.uk/aboutus/buildsocmember.htm and demutualised institutions at http://www.bsa.org.uk/consumer/factsheets/100010.htm.
