Double-digit drop in lending by building societies
Building societies lent £15.9bn in the third quarter of 2019, a fall of 11 per cent on the same period last year.
That’s according to new data from the Building Societies Association (BSA), which noted that gross lending from mutuals stood at £17.9bn in the third quarter of 2018.
This is equivalent to a market share of 23 per cent.
On a net lending basis, that market share drops to 15 per cent, with a total of £2.1bn. That’s down by 46 per cent on the £3.9bn recorded in the same period last year.
Overall, building societies approved over 106,000 new mortgage loans, down from 126,000 on an annual basis.
On the savings front, building societies now hold balances of £291bn, up four per cent, with balances having increased by £1.3bn.
Robin Fieth, chief executive at the BSA, described the mortgage performance of mutuals as “strong”, but noted that overall lending was down across the market.
He added: “Uncertainty over the UK’s position with the EU has undoubtedly dented consumer confidence, and people are therefore less willing to make significant financial decisions, such as buying a new home.
Consequently there are fewer properties coming on the housing market, reducing the demand for mortgage finance.”