Building societies mortgage lending hits £31.3bn

Building Societies gross mortgage lending hit £31.3 billion in six months to March 2024, a 30% market share of all lending according to latest Building Societies Association data.

Building Societies’ mortgage balances grew in the six months between October 2023 and March 2024, when they had declined across the rest of the market. At the same time, building societies have grown their savings balances and their service levels have again outperformed those at the banks.

After a slowdown in the housing market in 2023, new mortgage approvals have picked up in recent months supported by strong wage growth, falling inflation and higher levels of consumer confidence.

The latest lending data shows that mortgage balances at building societies increased in the six months to March 2024 by £8.6 billion. In the same period, mortgage balances at other lenders were reduced by £10 billion. This continues the trend seen throughout 2023 where building societies accounted for all the growth in the mortgage market.

Building societies’ lower-risk approach to lending decisions is reflected in the latest arrears data where 0.25% of building societies balances were in arrears at the end of Q4 2023, compared to 0.69% across the total market.