Approvals (loans agreed, but not yet made) decreased to £3,021 million in October 2004, from £4,962 million in October 2003.
In the savings market, building societies had net inflows of £1,068 million in October 2004, up from £675 million in October 2003.
Commenting on the figures, Adrian Coles, director-general of The Building Societies Association, said: "Evidence from building societies this month shows that people are taking a more cautious approach to the housing market. Caution is also the order of the day in the savings market, as people are choosing cash accounts, over investing in the stock market. This is reflected in the fact that new mortgage borrowing has dropped 58%, while savings are up 58% on a year ago.
"October’s lending figures confirm the view that there is a slowdown in the housing market, which is consistent with other recent data showing the market is on the turn. Net advances at £1,068m on a seasonally adjusted basis are at their lowest since November 2002. A year ago they were over double at £2,230m. However, approvals point to a gradual fall over the winter months, rather than a dramatic drop."
