Introduction

Figures published today show the building society sector continued be the driving force behind the mortgage market over the past six months. At the same time, customer service scores at building societies continue to outperform those of Banks.

Building societies support homeowners

Activity in the mortgage and housing markets has picked up over the past six months supported by strong wage growth, falling inflation and expectations that mortgage rates will continue to fall. The data published today shows that mortgage balances at building societies increased in the six months to September 2024, with net mortgage lending of £11.7 billion. Meanwhile mortgage balances at other lenders increased by just £4.6 billion. This follows 2023, where building societies accounting for all of the growth in the mortgage market in 2023 whereas mortgage balances at balances contracted.

Building societies support first-time buyers

Building societies also helped over 63,000 first-time buyers get on to the property ladder in the six months to September 2024, accounting for 44% of all their residential owner-occupied lending.

Building societies support savers

Building societies attracted £14.6 billion in cash savings during the six months to September 2024, accounting for 34% of all savings in the period. Savings balances at banks and other deposit takers increased by £27.7 billion.

Building societies also hold 40% of all cash ISA balances totalling £153.4 billion.    

Customer service data

Building societies outscored banks on various customer service metrics including the 93% 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 30% of branches in the UK, up from 14% in 2012. It is perhaps not surprising therefore that 72% of building society customers agreed that their provider is an important part of the community in which they operate, compared to 54% of bank customers. 

Key trading figures for the past six months

Building society mortgage lending - Apr 24 to Sep 2024

• Gross mortgage lending of £35.9 billion, a 29% market share of all lending 
• 205,209 mortgage approvals, a 32% market share of all approvals
• Building societies helped over 63,000 first-time buyers get on the property ladder, accounting for 44% of all their total residential lending.
• Net lending was £11.7 billion, compared to £4.6 billion at other lenders.
• At the end of September 2024, building societies had mortgage balances of £396.5 billion, a 24% share of total UK mortgage balances.

Building society savings deposits - Apr 24 to Sep 2024

• Savings balances increased by £14.6 billion, a 34% share of all UK savings
• At the end of September 2024, building societies had savings balances of £399.0 billion, which is a 19% share of total UK savings balances.
• At the end of September 2024, building societies had cash ISA balances of £153.9 billion, which is a 40% share of total UK cash ISA savings balances.

Building society customer service - November 2024

• 93% 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 73% of bank customers.