According to the Building Societies Association (BSA), which represents around 42 building societies and both mutual-owned banks and seven credit unions, building societies have been crucial for fuelling growth in the mortgage market, accounting for 89% of market growth in the nine months to September 2024.
The report found that there was “strong evidence” that they continue to “find solutions to the challenges facing today’s homeowners and aspiring homeowners”.
On the savings side, building society savers have received an extra £5.4bn in interest in the last five years than if they had paid average rates offered by large banks.
The report noted that in the nine months to September 2024, they attracted around £20.7bn in cash savings, making up around a third of all the growth in UK savings balances.
Savings are a crucial source of funding for mortgages, so their growth has a positive impact on the mortgage market.
Conversations you need to have with landlords before the Renters’ Rights Act
Sponsored by BM Solutions
Building societies also make up 30% of current high street bank branches, a rise of 50% on their share five years ago.
Some have also committed to retaining their high street branches and others are “innovating to develop the branch of the future”.
Nearly three-quarters of building society customers say they are an important part of their community, compared to just 54% of bank customers.
Robin Fieth, chief executive of the BSA, said: “Building societies have never lost sight of their purpose to help their members to save and to become homeowners.
“Their business model doesn’t rely on profit maximisation to line the pockets of external shareholders, it prioritises the needs of their customers, the members, and delivers value to them and their communities. At 250 years old, you could say they are the original B Corp.”
He continued: “I am proud that the way customer-owned building societies and credit unions do business is different to the banks. We are the original money movement, set up by ordinary working people, for ordinary working people and to help local communities to thrive.
“Anyone who is looking for a new mortgage or savings account, I’d recommend consciously thinking about who you choose to do business with. You could find an organisation that genuinely cares about their customers, who treats them as an individual, and keeps them at the heart of every decision they make.”
