- Building society gross advances amounted to £3,108 million in December 2004, decreasing from £3,997 million in December 2003.
- Net advances were £907 million in December 2004, down from £1,499 million in December 2003.
- Approvals (loans agreed, but not yet made) decreased to £2,572 million in December 2004, from £3,424 million in December 2003.
- In the savings market, building societies had net inflows of £998 million in December 2004, up from £867 million in December 2003.
- Building society net receipts into cash ISAs were £8 million in December 2004.
Commenting on the mortgage market, Adrian Coles, director-general of The Building Societies Association, said: “Once again the figures confirm the sharp deceleration in the market since the beginning of the year. The festive period is never a busy one for lending, but even taking this into account the slowdown over the last few months is clear. Higher interest rates, a puncturing of the air of confidence surrounding the market and the introduction of mortgage regulation are all causal factors.”
On the savings side Mr Coles said: “The strong inflow of funds has continued, with net receipts 80% up in 2004, compared to 2003. Indeed, they were higher than in any year since 1997. Attractive rates from building societies and a perceived poor outlook for equities probably explain the success.”
