Robin Fieth BSA Chief Executive comments on the positive effect of the appointment of the new Prime Minister after the EU Referendum result .
Commenting on Theresa May becoming Prime Minister, he said:
“The appointment of Theresa May as Prime Minister and her rapid action in recruiting her key cabinet team are important events which provide much needed reassurance, stability and certainty following the EU Referendum. As one of the longest serving Home Secretaries, she brings to her new role a resilience of character; common sense approach and history as a tough negotiator which will serve us well. The markets have reacted positively to the installation of a strong leader who provides a more assured outlook for consumers, businesses and the wider economy.
“As UK domestic customer-owned businesses, without external shareholders, building societies are able to remain focused on their principal purpose of providing a home for people's savings and funding for people's homes. With 25 million members, the building societies are the UK’s largest membership network and despite the economic and political bumps of the last few weeks we are and will remain open for business as usual. Looking forward we will continue to support the government’s ambition to increase housing supply, grow home ownership and enhance consumer resilience through their savings.”
Notes to Editors:
- The UK has 44 building societies which collectively hold assets of over £345 billion.
- The sector represents 21% of the total residential mortgage market by stock of loans, yet following the financial crisis has since 2012 been responsible for 72% of mortgage lending net of repayments and redemptions.
- Around a third of lending by building societies is to first-time buyers.
- With over £250 billion of retail deposits, the sector holds 18% of the country’s cash savings balances and around a third all cash ISA balances.
- As a sector over 95% of the loan book is residential lending.
- Building societies are well capitalised in absolute terms and in comparison with the UK’s big five banks. The average building society CET1 ratio is 18.4% compared to 12.5% for the big banks (weighted data from 2015/16 financial year for building societies 2015 financial year results for the big five banks).
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