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News in digestible form
Welcome to the September edition of our e-newsletter, BSA Newsbite. A monthly online update, Newsbite gives you the latest news, views and stats from the building society sector.
This update is complemented by the Autumn edition of Society Matters, which has now been published. This edition focuses on societies in the heart of their communities. To request a postal copy and to be added to the distribution list click here or to download a copy from the BSA website click here
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Turnout at building society AGMs climbs
The proportion of building society members casting their vote at AGMs held in 2008 increased to 19.4%, up from an average of 16.3% at the same societies a year earlier. This increase of 3.1 percentage points is a considerable rise, and is a result of a concerted effort by building societies to get their members involved in the society that they own.
Societies have used a variety of tactics to entice members to vote, including promoting the importance of voting in correspondence with members, a cash draw for those who voted, and making a charitable donation for each vote received. As a result of the latter initiative, societies have donated almost half a million pounds to good causes this year.
A greater proportion of societies have also made it easier for their members to vote, with almost half of all societies now offering the option to members to vote online.
The results of the votes cast were the same or better than last year in all categories, but most notably there was an increase in the average proportion voting in favour of building society directors’ remuneration, up to 95.0% in favour (excluding abstentions) from 93.8% in 2007.
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Mortgage lending in the credit crunch
The confidence of building societies in their business model was the key theme to emerge from BSA’s “Mortgage Lending in the Credit Crunch” seminar.
Despite the poor economic conditions, speakers at the event argued that societies still have an important role to play in allowing people the opportunity to buy a home.
Colin Franklin from the Coventry Building Society recognised the changes in the market, but, he said, this offered opportunities to innovative organisations to offer a new range of products that reflected these changed conditions. He suggested that the remortgaging business offers particular scope for societies to ensure that future growth is via offering high quality loans, and outlined some of the innovative products that the Coventry is now successfully offering in the marketplace.
But it is not only large societies who are prospering. Mike Heenan from the Stafford Railway Building Society outlined how a small product range means that costs are minimised and product prices are competitive, attracting business from around the country. At the same time developing links with the local community ensures that the society’s local profile, and business, remains high.
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Over a third think it is a good time to buy property
34% of the public think now is a good time to buy a residential property in the UK according to the latest BSA Property Tracker Survey. It suggests that buyers may be starting to think about returning to the market since just 27% of respondents thought so in June’s survey.
However, despite the optimism of some people, almost half of respondents (48%) disagreed that it was a good time to purchase property. To this group, the prospect of future property price falls was the most significant barrier to buying, and was chosen by 64% of these people.
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And finally ...
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For feedback, opinions and information, contact Newsbite’s editor Rachel Le Brocq.
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