Building Societies Association
Media Centre
Press release
SAVINGS REMAIN HIGH
Contact: Neil Johnson
Date: 30 Jun 2008 		Print page  |   Email 

Building societies’ excellent performance in the savings market continued in May, with societies attracting savings inflows of £853 million, the highest May figure since 2002.

This is good news for the savers taking advantage of the attractive interest rates and products that building societies are now offering.

Commenting on the figure, Adrian Coles, Director-General of the BSA, commented:-

“Yet again, savers have responded to the uncertain economic outlook by choosing the safety of a building society over the volatility of the stock market. High interest rates offered by societies, coupled with attractive product ranges, have seen customers continuing to flock to societies with their savings.”

Turning to the lending figures, Mr. Coles said:-

“The lending figures reflect the depressed state of the housing market. With 74% of respondents to the BSA’s Property Price Tracker survey expecting property prices to fall over the next year, it is no surprise that demand for new mortgages remains low, with net lending amounting to only £125 million.

“It is important not to read too much into one month’s very low figures. However, the figures do reflect the considerable adjustment in housing market activity now being experienced. We expect activity to remain at low levels for some time.”

Building Society Statistics May 2008

  • Building societies had net receipts of £853 million in May 2008 compared with £608 million in May 2007.
  • Building society net receipts to cash ISAs in May 2008 were £272 million compared with £404 million in May 2007.
  • Building society gross lending amounted to £3,279 million in May 2008 compared with £4,590 million in May 2007.
  • Net lending by building societies in May 2008 was £125 million compared to £1,262 million in May 2007.
  • Approvals in May 2008 were £2,337 million compared with £4,264 million in May 2007.

~ Ends ~

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

 

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, from the Association’s website at www.bsa.org.uk or from 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 at http://www.bsa.org.uk/consumer/factsheets/100010.htm

     

  5. BSA’s Property Price Tracker can be found at http://www.bsa.org.uk/mediacentre/press/pricetracker.htm