Insight from the Building Societies Association (BSA) showed that building societies and mutual-owned banks held 29% of the UK’s outstanding mortgage balances, but lent more than this during the period by providing 32% of net lending.
The BSA said the sector continued to demonstrate its support for first-time buyers and provide innovative solutions. In the six months to September, building societies completed 59,861 mortgages to first-time buyers.
Over the period, mutuals increased their mortgage balances by £7.5bn to £493bn, while cash savings balances rose by £8.8bn to £496bn.
Robin Fieth, chief executive of the BSA, said: “Consumers are increasingly looking for providers that offer long-term value, fairness and inclusive access to services in their communities. These latest figures show that building societies continue to meet that demand, supporting people to buy their first home and helping households build their financial resilience.
“As member-owned organisations, our focus is on delivering real benefits to consumers and ensuring that value stays within local communities rather than being directed to external shareholders.
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“While banks retreat from high streets and cut the local services communities rely on, building societies are doing the opposite – not only are they keeping branches open, but they are investing in them and opening new ones.”
Last week, the BSA launched its Building Society Sector Growth Plan, which called on the government and regulators to lead capital reforms to boost the capacity of the sector.
Fieth said: “These changes will enable building societies to help even more people to buy their own home, safeguard their savings and strengthen communities across the UK. We’re not asking for special treatment, just recognition of the vital role building societies play in ensuring the UK has a diverse and competitive financial services market and the ability to realise the full potential of the sector.”
