Building Societies Association
Media Centre
Press release
BUILDING SOCIETY SAVERS TAKE REFUGE FROM UNCERTAINTY
Contact: Neil Johnson
Date: 1 Sep 2008 		Print page  |   Email 
Continued economic uncertainty has seen building societies attract net receipts of £1.4 billion in July 2008, double the amount saved in July last year, as savers sought safe homes for their money.

Commenting on the figures, Adrian Coles, Director-General of the BSA said:-

“A turbulent stock market and greater anxiety over job prospects mean that people are increasingly viewing their tried and trusted building society as an excellent home for their money. They know that saving with a society ensures they can take advantage of a competitive product range with a name they can rely on.”

Turning to the mortgage market, Mr. Coles said:-

“Activity in the housing market continues to be depressed, and the approvals figures suggest this is likely to continue for some time. Recent falls in house prices have been widely publicised, reducing potential buyers’ confidence and keeping them out of the market.  And with societies seeking to maintain high quality loan books, societies have chosen to follow a policy of conservative lending that has further reduced the amount of mortgage business they have undertaken.”

Building society statistics July 2008
  • Building societies had net receipts of £1,435 million in July 2008 compared to £723 million in July 2007.
  • Building society net withdrawals from cash ISAs in July 2008 were £228 million compared to net receipts of £167 million in July 2007.
  • Building society gross lending amounted to £3,300 million in July 2008 compared to £4,417 million in July 2007.
  • Net lending by building societies in July 2008 was -£79 million compared to £506 million in July 2007.
  • Approvals in July 2008 were £2,511 million compared to £3,928 million in July 2007.

~ Ends ~

CONTACT:  Neil Johnson
DIRECT LINE:  020 7520 5903
NIGHT/WEEKENDS:  07908 764 549
EMAIL:  neil.johnson@bsa.org.uk


Link to Funding Table

Link to Lending Table

Notes
  1. The Building Societies Association (BSA) represents all 59 building societies in the United Kingdom. Building societies have total assets of over £360 billion and, together with their subsidiaries, hold residential mortgages of £250 billion, more than 20% of the total outstanding in the UK. Societies hold about £230 billion of retail deposits, accounting for more than 20% of all such deposits in the UK. Building societies also account for about 38% of all cash ISA balances. Building societies employ over 51,500 full and part-time staff and operate through more than 2,000 branches.
  2. 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 
  3. Detailed statistical information can be found on the accompanying spreadsheets
  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 here.