Gross lending by building societies increased 44 per cent year-on-year in July, according to figures from the Building Societies Association.
Building societies lent £3.1bn in July compared with £2.1bn in the same month the year before. Lending also increased 14 per cent on June’s figures, which stood at £2.7bn.
Mutuals took a 24 per cent market share of gross lending in July, up from 17 per cent in July 2011.
The number of mortgages approved by mutuals was up 47 per cent in July, at 2,786 compared with the same month last year – 1,891.
BSA director general Adrian Coles says: “Lending activity by mutuals has been growing strongly on a year on year basis for some time now, and in July gross lending rose again by a healthy 44 per cent. At the same time lending by banks fell by 9 per cent in July. As a result, mutuals continue to take market share, up to 24 per cent in July, well above the 17 per cent figure for the same month on 2011.
“Approvals by mutuals were also up in the month and this means that this trend of increased lending is likely to continue. The Funding for Lending scheme has not influenced these figures and may not start to for a number of months yet.”