Feb 20 2006
UK building societies have reported strong performance for savings and mortgage approvals during January 2005.
New figures from the Building Societies Association (BSA) show that building societies saw stronger savings activity last month, with net receipts to cash ISAs up from £41 million to £55 million over the year to January 2006.
Net inflows in January 2006 reached £212 million, compared with net withdrawals of £299 million in January 2005. The savings inflows marked the highest total since January 2001.
Building society gross advances rose significantly, from £2,682 million in January 2005 to £3,174m in January 2006, while net advances for the month were £718 million in January, compared with £745 million the previous year.
BSA director general Adrian Coles commented: "Normally credit card repayments and working off the Christmas "financial hangover" result in outflows from savings accounts in January. The figures confirm the emerging trend of strong savings which became apparent in the second half of 2005."
In mortgages, approvals rose to the highest level in two years at £2,908 million, compared with £2,037 million in January 2005.
"Seasonally adjusted approvals (loans agreed but not yet made) were the highest since November 2003," Mr Coles added. "This confirms other evidence that there has been a slight rally in the housing market. Building societies appear to be participating fully in this trend."
