BSA: Happy new year for building societies’ savers
Strong savings inflows into building societies during the latter part of 2007 have continued, with the new year seeing the largest January inflow (£597 million) to societies since 1997.
Commenting on the figures, Adrian Coles, Director General of the BSA said:-
“The high savings deposits in January represent another excellent month for building societies. The attractive savings products that societies are offering, coupled with the volatility of share prices, have attracted savers into societies, while the continuing economic uncertainty is encouraging further saving.
“The January figures often show a net outflow as families pay off Christmas bills, with seven of the previous ten years seeing net withdrawals. Placed in this context, the savings inflow in January was particularly high”.
Turning to the mortgage figures, Mr. Coles said:-
“Gross mortgage lending by building societies in January was around the same level as in January 2007. Although down year on year, net lending was stronger in January than in the second half of 2007, although mortgage approvals have remained relatively subdued. This suggests that we may see a further cooling in mortgage lending as 2008 progresses.”
Building Society Statistics January 2008
Building societies had net receipts of £597 million in January 2008, compared to a net withdrawal of £196 million in January 2007.
Building society net receipts to cash ISAs in January 2008 were £65 million, compared to £83 million in January 2007.
Building society gross lending amounted to £4,097 million in January 2008, compared to £4,036 million in January 2007.
Net lending by building societies was £1,263 million in January 2008, compared to £1,475 million in January 2007.Approvals (loans approved but not yet made) were £3,216 million in January 2008, compared to £4,008 million in January 2007.
ends
1. The mortgage lending data in this press release are now sourced from the Bank of England. Previously, this data was provided by the Financial Services Authority. This has resulted in slight changes to the lending data, as the data now excludes “other loans fully secured on residential property” (i.e. those which are not to individuals or housing associations) but now does include “other loans to individuals (and housing associations) fully secured on land”. The historical data are consistent with this definition.
2. The Building Societies Association (BSA) represents all 59 building societies in the United Kingdom. Building societies have total assets of just under £325 billion and, with their subsidiaries, hold residential mortgages of around £250 billion, approximately 20% of the total outstanding in the UK. Societies hold just under £210 billion of retail deposits, accounting for about 20% 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.
3. Photographs of Adrian Coles are available from the BSA press office, from the Association’s website at www.bsa.org.uk or from 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
Neil Johnson
PR & Policy Manager
Building Societies Association
Tel : 020-7520 5903
E-Mail : neil.johnson@bsa.org.uk
The BSA’s telephone numbers changed on 25th February 2008. My new number is now 020-7520 5903. The fax number is unchanged.
Don’t forget the BSA’s Annual Conference in Manchester on 7/8 May 2008. More information is at www.bsaconference.org
THE BUILDING SOCIETIES ASSOCIATION
Website: http://www.bsa.org.uk
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