Building societies’ mortgage balances grew in the six months between October 2023 and March 2024, when they had declined across the rest of the market.

After a slowdown in the housing market in 2023, new mortgage approvals have picked up in recent months supported by strong wage growth, falling inflation and higher levels of consumer confidence.

The latest lending data shows that mortgage balances at building societies increased in the six months to March 2024 by £8.6 billion. In the same period, mortgage balances at other lenders reduced by £10.0 billion. This continues the trend seen throughout 2023 where building societies accounted for all the growth in the mortgage market.

Building societies’ lower risk approach to lending decisions is reflected in the latest arrears data where 0.25% of building societies balances were in arrears at the end of Q4 2023, compared to 0.69% across the total market.

A statement from the Building Societies Association says building societies raison d’etre is – and has been for almost 250 years – to help people into homeownership, as well as providing a safe home for their savings. A number of building societies have introduced new and innovative ways to support people into homeownership, and in the six months to March 2024 they have helped 49,844 first-time buyers to buy a home of their own.

This accounted for 37% of all residential building society lending.

Building societies key statistics – October 2023 to March 2024

•    Gross mortgage lending £31.3 billion, 30% market share of all lending
•    Net lending £8.6 billion whereas balances at other lenders dropped by £10.0 billion

•    191,241 mortgage approvals, 36% market share of all approvals
•    Supported 49,844 first-time buyers get on the property ladder, accounting for 37% of all residential building society lending.