Building societies lent homebuyers close to a third more in the first half of 2014 than 2013 and maintained market share at 25 per cent, despite both Co-operative Bank and Kent Reliance de-mutualising.
According to data published by the Building Societies Association, gross mortgage lending by building societies was £24.5bn, accounting for 25 per cent of the £97.8bn total mortgage lending in the UK during the period.
This compares to gross lending in the first half of 2013 of £75.7bn, with building societies holding a 25 per cent share with £19.2bn.
Net mortgage lending by building societies was £4.5bn, representing a 43 per cent share of net lending across the market. Building societies approved 187,400 mortgage loans, a 29 per cent share of all loans approved across the market from January to June.
During the first half of the year retail savings balances at building societies increased by £3.6bn, so when interest credited is deducted, they had a net receipt of £2.1bn.
The BSA highlighted that figures for the first half of 2013 differ as both Co-operative and Kent Reliance figures were a part of this period, but both have since de-mutualised and ceased to be BSA members.
Hilary McVitty, head of BSA external affairs told FTAdviser, said that building societies punched above their weight in the first six months of the year.
“The natural market share for societies is around 19 per cent, but this performance accounts for 27 per cent of all mortgage approvals [where the total market is £97bn, giving a £25.7bn share].
“We have seen the market cool a little in the second quarter, largely due to MMR bedding in. Looking forward, it is positive news that the volume of properties going onto the market is rising.
“We still need to be building far more homes in the UK, but this easing of supply is likely to help push prices down a little - of benefit to purchasers and first time buyers in particular.”
