Net lending at mutuals up £99m in October

Net lending by building societies rose £99m in October to 413m from £314m in September.

But despite the rise, the latest figures from the Building Societies Association show that lending is 45% lower than October last year.

Gross mortgage lending was £3.2bn – a decline of 30% on October 2007.

Adrian Coles, director general of the BSA, says: “With the depressed state of the housing market, it is no surprise that mortgage lending by societies remains low, albeit slightly improved in September.

“With confidence in the market so restrained, homeowners are choosing to stay put rather than move, while first time buyers continue to wait for further falls in prices.”