BSA: Highest ever savings at building societies
Thursday, 18 Oct 2007 09:36
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Building societies had net receipts of £2,821m in September 2007 compared to net receipts of £1,001m in September 2006
Building society net receipts to cash ISAs were £68m in September 2007, compared to £57m in September 2006
Building society gross advances amounted to £4,230m in September 2007, compared to £5,047m in September 2006
Net advances were £825m in September 2007, versus £1,906m in September 2006
Approvals were £4,319m in September 2007 down from £4,874m in September 2006
Commenting on the savings figures, Adrian Coles, Director-General of the BSA, said:
“The September net receipts figure represents the highest monthly inflow that building societies have ever experienced. This is more than double the amount deposited in August, nearly three times the amount deposited in September last year, and nearly £1billion higher than the previous record.
“It is likely that a significant proportion of the inflow is due to withdrawals from Northern Rock bank being redeposited in building societies. With savers searching for the best home for their money, the wide range of attractive savings products that societies offer proved to be very competitive.”
Commenting on the mortgage figures, Mr. Coles said:
“It is clear that the impact of higher interest rates is continuing to dampen the housing market, and societies are continuing to ensure that they are lending only to those who can afford to borrow. These factors meant that lending in September was subdued compared to last year. Despite this, net lending and approvals were up from the previous two months.”
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Notes to Editor:
1. The Building Societies Association (BSA) represents all 59 building societies in the United Kingdom. Building societies have total assets of almost £315 billion and hold residential mortgages of just under £215 billion, approximately 18% of the total outstanding in the UK. Societies hold over £200 billion of retail deposits, accounting for about 19% of all such deposits in the UK. Building societies also account for over 37% of all cash ISA balances. Building societies employ over 50,000 full and part-time staff and operate through more than 2,100 branches.
2. The previous highest monthly net inflow was £1,946 million in October 1986 when unsuccessful applicants for TSB shares redeposited their money in building societies.
3. Photographs of Adrian Coles are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
4. 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