Society approvals hold steady: BSA

The value of building society mortgage approvals in October was £1.51bn - broadly in line with the £1.56bn of approvals in September.

Gross lending by building societies also remained steady with £1.66bn being lent in October compared to £1.60bn in September. However, activity remains considerably more subdued than a year earlier.

Adrian Coles, director-general of the BSA, said that funding conditions remain difficult and the supply of properties to the market is low, which is frustrating any increase in demand for house purchase

He added: "Modest improvements in the housing market have occurred in recent months, especially when compared to the start of the year, however lending still remains subdued compared to previous years. Lending activity is likely to remain depressed until funding and supply conditions improve."

In the savings market, mutuals saw a net withdrawal of deposits of £1.2bn in October.

Coles explained: "There is little incentive for people to increase savings whilst the Bank Rate remains at its current low level, and many may opt to repay debt instead. Building societies and other deposit takers are also facing heightened competition from institutions with a Government guarantee, which is creating further distortions in the savings market."