Figures released today from the Building Societies Association for Q3 2021 show continued momentum in the housing market, with gross lending by building societies up 22% compared to the same period in 2020.
Savings balances at building societies have grown strongly, increasing by £4.2 billion in Q3 2021, three times the increase in the third quarter of 2020.
“The strong level of mortgage lending activity in the third quarter by building societies, and across the wider market, suggests that the tapering of the stamp duty holiday has not been a major barrier to property purchase. It is likely that households will continue to re-evaluate their housing needs in the post-pandemic world, which will to continue to support demand into the new year.
“The Bank of England is sounding like it is ready to increase the Bank Rate from its historically low level of 0.1% over the coming months. Whilst this may see some mortgage rates rise, the vast majority of households are on fixed term products and so won't see any immediate change to their monthly repayments.
“Savings balances have also grown at building societies in the period and it’s particularly pleasing to see an inflow to Cash ISAs, despite a £3.6 billion outflow across the market.”
Hilary McVitty, firstname.lastname@example.org Tel: 07741 984 042
Katie Wise, email@example.com Tel: 020 7520 5904
Download building society mortgage lending figures here
Download building society savings figures here