Introduction

Figures published today show the building society sector continued to grow its mortgage lending whilst lending at Banks contract. At the same time, customer service scores at building societies continue to outperform those of Banks.

Building societies support homeowners

After slowing down somewhat in 2023, new mortgage approvals picked up in recent months supported by strong wage growth, falling inflation and higher levels of consumer confidence. The data published today shows that mortgage balances at building societies increased in the six months to March 2024, with net mortgage lending of £8.6 billion. Meanwhile mortgage balances at other lenders reduced by £10.0 billion, as borrowers repaid more than these lenders lent out in the period. This continues the trend seen over the whole of 2023 where building societies again accounted for all of the growth in the mortgage market and mortgage balances at banks contracted.

Building societies support first-time buyers

Building societies also helped 49,844 first-time buyers get on to the property ladder in the six months to March 2024, accounting for 37% of all their lending.

Building societies support savers

Building societies attracted £14.7 billion in cash savings during the six months to March 2024, accounting for 35% of all savings in the period. Savings balances at banks and other deposit takers increased by £27.0 billion.

Customer service data

Building societies outscored banks on various customer service metrics including the 92% of building society customers who agreed their provider offered good customer service compared to 87% of bank customers who agreed. 

Supporting high streets and communities

The building society sector is committed to keeping a presence on the high street, and support their local community. This is illustrated by the fact that building societies account for 28% of branches in the UK, up from 14% in 2012. It is perhaps not surprising therefore that 73% of building society customers agreed that their provider is an important part of the community in which they operate, compared to 49% of bank customers. 

Key figures - October 2024 - March 2024

Key figures: Building societies performance in the six months to March 2024 (Oct 23 to Mar 2024)

• Gross mortgage lending of £31.3 billion, a 30% market share of all lending 
• 191,241 mortgage approvals, a 36% market share of all approvals
• Building societies helped 49,844 first-time buyers get on the property ladder, accounting for 37% of all their total residential lending.
• Net lending was £8.6 billion whereas balances at other lenders fell by £10.0 billion
• Savings balances increased by £14.7 billion, a 35% share of all savings in the period
• 92% of customers agreed that their building society offered good customer service, compared to 87% of bank customers.
• 86% of customers agreed that their building society offered competitive rates, compared to 76% of bank customers. 

Data