Building Societies Association
Media Centre
Press release
CASH ISAs LEAD THE WAY IN RECORD BUILDING SOCIETY FIGURES
Contact: Neil Johnson
Date: 2 Jun 2008 		Print page  |   Email 

The highest ever monthly inflow to building society cash ISA accounts contributed to a record April savings inflow for societies of £1.8 billion.

The £2.1 billion[1]  ISA inflow during April represents a record monthly amount for building society cash ISA products, and will help to ensure that societies remain well funded.

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

“Yet again building societies have attracted record savings inflows during April, continuing their excellent performance in the savings market. Savers are increasingly recognising that the very competitive saving products that building societies offer represent excellent homes for their cash in these uncertain economic times. It appears that building society cash ISAs were particularly popular because of a less optimistic outlook for future stock market performance.”

Turning to the lending figures, Mr. Coles said

“Gross lending was down just 3.3% on the same month last year, and was similar to the level seen in March this year. Although approvals picked up slightly from March, they are still down on last year, and mortgage activity will be subdued in the coming months. 

“However, the record savings figures mean that societies, unlike some wholesale funded lenders, have funds available for mortgage lending. Despite the depressed mortgage market, building societies remain open for business (every society issued new mortgages during April) and are able to lend.”

Building Society Statistics April 2008

  •  ·         Building societies had net receipts of £1,820million in April 2008 compared to £1,351million in April 2007
  •  ·         Building society net receipts to cash ISAs in April 2008 were £2,052million compared to £1,773million in April 2007
  •  ·         Building society gross lending amounted to £3,645million in April 2008 compared to £3,768million in April 2007
  •  ·         Net lending by building societies in April 2008 was £666million compared to £1,114million in April 2008
  •  ·         Approvals in April 2008 were £3,185million compared to £3,751million in April 2007

 

~ Ends ~

 CONTACT: Neil Johnson

DIRECT LINE: 020 7520 5903

WEEKENDS/OUT OF HOURS: 07908 764 549

EMAIL: neil.johnson@bsa.org.uk

Lending table

Funding table
Notes

  1. The ISA inflow is greater that the total sector savings inflow because some money will have been withdrawn from other savings accounts with building societies and redeposited into building society Cash ISA accounts.

     

  2. The Cash ISA limit increased from £3,000 to £3,600 on April 6th.
  3.  The Building Societies Association (BSA) represents all 59 building societies in the United Kingdom. Building societies have total assets of just under £350 billion and, together with their subsidiaries, hold residential mortgages of £245 billion, more than 20% of the total outstanding in the UK. Societies hold about £215 billion of retail deposits, accounting for more than 20% of all such deposits in the UK. Building societies also account for over 38% of all cash ISA balances. Building societies employ over 50,000 full and part-time staff and operate through more than 2,100 branches. 

  4. 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


  5. Detailed statistical information can be found on the accompanying spreadsheets
  6. 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