Lending remains low

Gross mortgage lending by building societies was £3.2 billion, a decline of 30 per cent on October 2007.

Commenting on the figures, Adrian Coles, Director General of the BSA, said:"With the depressed state of the housing market, it is no surprise that mortgage lending by societies remains low, albeit slightly improved in September. With confidence in the market so restrained, homeowners are choosing to stay put rather than move, while first time buyers continue to wait for further falls in prices."

Turning to the savings figure, Coles added: "Net receipts into building society savings accounts were £115 million in October. With the continuing squeeze on household incomes, people have less to save and are possibly choosing to repay existing debt rather than save."