Building society sector continues to grow

Latest figures from the Building Societies Association (BSA) has shown that in  the six months to September 2025, building societies and the two mutual-owned banks increased their mortgage balances by £7.5 billion, to £493 billion and grew cash savings balances by £8.8 billion, to £496 billion.

Building societies and mutual-owned banks hold 29% of the UK’s outstanding mortgage balances yet provided 32% of the UK’s net lending in the period. More than 220,000 new mortgages were approved, representing 31% of all market approvals.

Building societies’ support for first-time buyers remains significant, as they continue to offer innovative solutions to the barriers faced by aspiring homeowners. In the six months to September 2025, they provided 59,861 mortgages to first-time homebuyers.

Building societies and mutual-owned banks continue to attract a high proportion of savings. They received 27% of all UK cash savings in the six months to September 2025, considerably higher than their 23% market share of savings balances.

Commenting on the half year figures, Robin Fieth, Chief Executive of the Building Societies Association said “Consumers are increasingly looking for providers that offer long-term value, fairness and inclusive access to services in their communities.  These latest figures show that building societies continue to meet that demand, supporting people to buy their first home and helping households build their financial resilience.

“As member-owned organisations, our focus is on delivering real benefits to consumers and ensuring that value stays within local communities rather than being directed to external shareholders.
“While banks retreat from high streets and cut the local services communities rely on, building societies are doing the opposite – not only are they keeping branches open, but they are investing in them and opening new ones.

“Last week we launched the Building Society Sector Growth Plan, which called on government and regulators to drive capital reforms that would unlock the full potential of the sector. These changes will enable building societies to help even more people to buy their own home, safeguard their savings and strengthen communities across the UK. We’re not asking for special treatment, just recognition of the vital role building societies play in ensuring the UK has a diverse and competitive financial services market and the ability to realise the full potential of the sector.”