· Building society gross advances amounted to £4,707 million in
August 2004, increasing from £3,762 million in August 2003.
· Net advances were £1,959 million in August 2004, up from £1,397 million in August 2003.
· Approvals (loans agreed, but not yet made) decreased to £3,638 million in August 2004, from £3,920 million in August 2003.
· In the savings market, building societies had net inflows of
£1,191 million in August 2004, up from £288 million in August 2003.
· Building society net receipts into cash ISAs were £91 million in
August 2004.
Commenting on the mortgage market, Adrian Coles, Director-General of
The Building Societies Association said:
"The figures suggest that we have reached a turning point in the
housing market. Net advances are 51% higher than a year ago, reflecting the strength of the housing market in the Spring and early Summer. However, approvals (loans agreed but not yet made) are well down (by over 12%) suggesting that lending will decline in the Autumn."
On the savings side, Mr Coles said:
"Savers have rediscovered the attractions of building society
accounts. Inflows were the highest since March 2001 * rising interest rates and a lacklustre stock market leave serious investors with an obvious choice * a building society savings account."
