Building society lending hits high for 2010

Gross mortgage lending by mutual building societies grew by 11% in July to £1.995bn, the highest monthly total so far this year, according to the Building Societies Association (BSA).

In June 2010, gross mortgage lending was £1.798bn.

Net lending by mutuals in July was -£379m compared to -£432m in June.

BSA figures showed that mortgage approvals by mutuals in July amounted to £1.94bn, holding relatively steady on June's figure of £1.894bn.

Adrian Coles, director-general of the BSA, said:

"Lending by mutual mortgage providers has picked up over the summer months and the approvals figures suggest this level of lending may continue in the near future.

"Nevertheless, while the outlook appears a little brighter, there remain significant challenges such as heightened uncertainty about job prospects and household incomes, potentially limiting future demand. This could make it difficult to sustain the growth in activity."