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News in digestible form
Welcome to the December edition of our e-newsletter, BSA Newsbite. A monthly online update, Newsbite gives you the latest news, views and stats from the building society sector.
The Winter edition of Society Matters is a mortgage and housing policy special. It is out now - to request a postal copy and to be added to the distribution list click here. To view the pdf version, click here.
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Building societies outshine rivals on mortgage service
Independent research has shown that more building society customers would recommend their mortgage lender to family, friends or colleagues, than customers of other types of lender.
The research, conducted by Capital Blue, found that 52% of building society customers would definitely recommend their lender, yet less than 40% of bank customers would be happy to do so. The high levels of customer focus that are the cornerstone of building societies means that this will come as no surprise to anyone who follows the mortgage market. What is interesting though, is how few customers of former building societies would recommend their lender - only 37% - confirming the long held view that once societies demutualise service levels start to fall as the company focuses on profits and shareholder value rather than delivering an quality service to their customers.
Read the full article
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UK first as mutual sector hosts national forum
Mutual organisations in the financial services sector including building societies, mutual insurers, foundation trusts and cooperatives joined organisations from across the health, education and retail sectors on 4 December in the first national event to bring together organisations owned by members and not shareholders.
The Rt Hon Hazel Blears MP, Secretary of State for Communities, who addressed the Forum, said of the mutual sector:
“Over their long history, mutuals have made a mark on many towns and cities across the UK. Many command a degree of affection and trust that few plcs can. That’s because of the principles at the heart of mutuals: not just speculation, but support; not just profit, but investing in the common good. The [mutuals] "yearbook" reveals just how big a role mutuals play in our economy and society, employing over 800,000 people, with membership equivalent to 1 in 3 people in the UK, revenue of £84bn, and assets of £477bn.
“Like any other business, mutuals are feeling the strain of the financial crisis. But there’s a silver lining. Mutuals are better placed than many plcs to weather the storm...".
Read the full article
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UK Housing Review launched
The recent launch of the 2008/09 edition of the UK Housing Review, sponsored by the BSA, sparked a debate about the future of the UK housing market.
The Review’s editor, Steve Wilcox, from the University of York, argued that many homeowners are, recognising the slow housing market, choosing to become landlords. Unable to sell their homes, they are opting to move into new rented accommodation, letting their existing properties out until the market recovers and they can find a buyer.
Yolande Barnes from Savills noted that as property and mortgage costs fall, home ownership is becoming more affordable, ultimately attracting buyers back into the market. At the same time, the declining pound is making British property increasingly attractive to foreign investors.
But Michael Ball from the University of Reading argued that any recovery in the mortgage market will be offset by the effects of the recession, which will see potential buyers continue to keep out of the market. He did, however, offer hope for the buy-to-let sector, noting he did not anticipate a large numbers of landlords having repayment difficulties, with most enjoying only a 25-30% loan/value ratio. This will mean they have significant amounts of equity which they will be able to use to buy when markets return.
Copies of the UK Housing Review, can be purchased for £45.00. Please email neil.johnson@bsa.org.uk for more information.
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Society news
On 31 December 2008, two building society mergers will take place. Chelsea and Catholic building societies will merge - the combined society will be named Chelsea Building Society. Yorkshire Building Society will merge with Barnsley Building Society - the Barnsley’s name and branches will be retained.
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Building Societies Yearbook 2008-09
The latest edition of the Building Societies Yearbook, the official handbook of the BSA, is now available.
With all the latest facts and figures, the publication is packed with:
- Features from experts on subjects including Treating Customers Fairly, lost accounts and the housing and mortgage markets
- Listings of all UK building societies, including key contacts within each building society and a summary financial statement
- Statistical data for each society (assets, shares, borrowings, investing and borrowing members, ATMs and branches)
- Details of mergers, transfers and changes of status within the sector
For details of how to purchase a copy of the Yearbook click here
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BSA welcomes new Associate
Mazars LLP is a business advisory and accountancy firm, who specialise in audit, tax and advisory services. They are one of Europe’s largest accounting firms and are represented in 50 countries worldwide.
To find out more about them check out their website www.mazars.co.uk
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And finally ...
If Newsbite has been forwarded to you by a colleague and you would like to get your own copy direct, or if you would like to unsubscribe just e-mail the Media Centre.
For feedback, opinions and information, contact Newsbite’s editor Rachel Le Brocq.
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