Gross mortgage lending by building societies was £3.2 billion, a decline of 30% on October 2007.
Commenting on the figures, Adrian Coles, Director General of the BSA, said:- "With the depressed state of the housing market, it is no surprise that mortgage lending by societies remains low, albeit slightly improved in September. With confidence in the market so restrained, homeowners are choosing to stay put rather than move, while first time buyers continue to wait for further falls in prices."
Turning to the savings figure, Mr. Coles said:- "Net receipts into building society savings accounts were £115 million in October. With the continuing squeeze on household incomes, people have less to save and are possibly choosing to repay existing debt rather than save."
Building society statistics October 2008
Building society gross lending amounted to £3,214 million in October 2008 compared to £4,582 million in October 2007.
Net lending by building societies in October 2008 was £413 million compared to £747 million in October 2007.
Approvals in October 2008 were £2,777 million compared to £3,838 million in October 2007.
Building societies had net receipts of £115 million in October 2008 compared to net receipts of £3,024 million in October 2007. The October 2007 figure was the record month for net receipts to building societies as a consequence of the massive withdrawals from Northern Rock bank at that time.
Building societies had net receipts of £1,168 million from Cash ISAs in October 2008, compared to net receipts of £91 million in October 2007.
