Building society savings double

By THIS IS MONEY
Updated: 19:00 EST, 18 July 2002

SAVINGS in building society accounts have doubled since June last year, according to figures released by the Building Societies Association (BSA). Net advances to mortgage borrowers have also risen by 80% in the same period. The BSA says the figures point to a recovery afeter the dip in market share mutuals experienced last year.

Commenting on the statistics, Adrian Coles, director-general of the BSA, says: 'Savings inflows doubled between June 2001 and June 2002, reflecting the extreme uncertainty in the equity markets.

'Investors clearly value the capital certainty of building societies savings accounts, which are market leaders.'

However, despite market growth since the same time last year, both net advances and savings inflows for building societies in June 2002 fell compared to amounts recorded in May 2002, suggesting a seasonal slump in market activity.

In the savings market, building societies had net inflows of £865 million in June this year, compared to £871 million in the previous month.

And in the mortgage lending market, net advances were down to £1,061 million in June from £1,122 million in May.

Coles at the BSA, however, remains optimistic: 'Net advances are up on last year showing the continued strength of the housing market and the competitive products building societies are offering,' he says. 'Approvals outstanding - ie the pipeline of loans agreed but not yet made - at £9 billion - up over 50% in the past year - suggests this trend will continue.'