BSA reveals October lending the highest of 2005

Lending and saving figures from the Building Societies Association reveal building society gross advances amounted to 3,808m in October, compared to 3,497m in October last year.

Net advances were 929m in October, down from 1,055m in October 2004, and approvals increased to 3,870m from 3,021m in October 2004.

In the savings market, building societies had net inflows of 821m in October 2005, down from 1,068m in October 2004, and building society net receipts into cash ISAs were 60m.

Adrian Coles, director-general of the BSA, says: “Building society lending has picked up over the last couple of months or so, with both seasonally adjusted gross advances and commitment to lend reaching their highest figure of the year in October.

“The market seems to be showing a slow but steady recovery, but it is clear that we are nowhere near boom conditions and there is no possibility of such conditions emerging over the next year or two.”