2
Feb
Building societies report increase in lending
The Building Societies Association (BSA) has revealed that gross
mortgage lending among its members increased by 15 per cent in the
final month of last year.
In December 2009, building societies provided funds for house
purchases totalling £1.8 billion, compared with £1.6
billion in the previous month.
The BSA noted that this rise could most likely be attributed to the
rush of buyers attempting to complete transactions before stamp
duty increased at the end of December.
However, the organisation noted that the total level of lending in
2009 was significantly lower than in 2008.
Paul Broadhead, BSA head of mortgage policy, commented: "Despite
this rise, total gross lending in 2009 was only half of that in
2008 and it is likely to remain at low levels until funding
conditions improve."
Figures released by the Bank of England on February 1st revealed
that lending from banks and building societies across all
non-financial corporation sectors fell by £7.9 billion in
December last year.