Societies' mortgage lending drops slightly in November
Share
Gross mortgage lending by building societies fell to £1.6bn in November, compared to £1.7bn in October.
Building society gross lending also fell to £1.6bn in November 2009, compared to £2.5bn in November 2008, while net lending by building societies was -£543m in November 2009 compared to £412m in November 2008.
Mortgages approved by building societies in November 2009 amounted to £1.3bn compared to £2.2bn in November 2008.
Adrian Coles, director-general of the BSA, says although the housing market has stabilised slightly in recent months following the drop in activity at the start of the year, lending is still at lower levels than a year ago.
He says: “Funding conditions for all lenders are improving slowly, but these are still acting as a brake on lending, as is the relatively small number of properties coming to market. Lending activity is likely to remain relatively depressed in 2010 until funding and supply conditions improve.”
In the savings market balances held in savings accounts at building societies reduced by £0.6bn in November. After interest credited to accounts is excluded, building societies had a net withdrawal of £0.8bn in November.
The BSA says it is difficult to make direct comparisons with previous years’ data as Britannia merged with Co-operative Financial Services in August 2009, after which Britannia is no longer classified as a building society.
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
