2 Feb

Building societies report increase in lending

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.ADNFCR-1222-ID-19591305-ADNFCR

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