Building society lending ‘remaining steady’

The level of homebuyer loans being issued by mutuals remained roughly the same in October as it did in September, new figures have indicated.

Data from the Building Societies Association (BSA) showed that the total value of mortgage approvals dipped from £1.565 billion in September to £1.511 billion last month.

However, gross lending during this period was slightly up, from £1.605 billion to £1.666 billion.

BSA director general Adrian Coles observed that “modest improvements in the housing market have occurred in recent months, especially when compared to the start of the year”.

However, he added, there will need to be a substantial increase in both the supply of finance and the number of houses on the market to enable the level of lending to go on rising.

The BSA figures come a week after the British Bankers’ Association unveiled its figures for October.

During the month, the level of lending increased by £3.1 billion, the same amount as in September but up on the six-monthly average of £2.7 billion.

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