The Building Society Association (BSA) figures show mortgage lending at an 18-month high.

Savings balances held firm growing £0.4bn in October, against an outflow of £1.1bn in October last year.

This is a 15% increase in gross lending for the first ten months of 2011 at £19.1bn, against £16.6bn in 2010.

In the first nine months of 2011, savings balances in mutual accounts increased by £3.2bn, against falls of £2bn in the same period in 2010.

Commenting, Adrian Coles, BSA director-general, said: “With the Government recently announcing policies that highlight the importance of the housing market to the UK economy, building societies and other mutual lenders continue to play their part supporting homebuyers. So far this year, mutual lenders have lent 15% more than in the same period in 2010, whereas other lenders have so far lent 1% less than last year,” he said.

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He said despite the household income squeeze, building society cash deposit accounts provide a safe haven in uncertain times.