The mutual gross lending total was £2.1bn in June 2011, which is 16% higher than the £1.8bn in June 2010.
Approvals in the first six months of the year were £10.6bn, compared to £8.8 bn in the same period last year – a 20% increase.
Adrian Coles, director-general of the Building Societies Association, said: “Despite the evident weakness in the housing market, mutuals continued to strengthen their position with gross lending and approvals up 20% in the first half of the year compared to the first six months of last year.”
However, building society customers continue to withdraw savings, as balances held with mutuals fell by £94m in June 2011, compared to an increase of £16m in June 2010.
When the interest credited to accounts is excluded, mutuals had a net withdrawal of £362m, compared to a net withdrawal of £262m in June last year.
Coles said: “Pressures on household finances such as high inflation and low wage growth are clearly taking their toll on the ability of households to save. Despite these pressures, retail savings balances held with mutuals increased by over £1bn in the first half of 2011.”
Meanwhile, Bank of England figures show total lending to individuals rose £0.4bn in June, lower than the previous six-month average increase of £1.2 bn.
However, residential mortgage lending fell by £0.1bn in June, compared with the previous six-month average increase of £0.8bn. The three-month annualised growth rate decreased 0.2 to 0.6% while the twelve-month growth rate remained unchanged at 0.7%.
