Lending to remain depressed in 2010: BSA

The latest statistics on lending by building societies from the trade body showed that gross mortgage lending by building societies was £1.6bn in November, compared to £1.7bn in October.

Mortgages approved by building societies in November amounted to £1.2bn, compared to £2.1bn in November 2008.

Adrian Coles, director-general of the BSA, said that although the housing market stabilised slightly in recent months, lending is still at lower levels than a year ago.

He added: "Funding conditions for all lenders are improving slowly, but these are still acting as a brake on lending, as is the relatively small number of properties coming to market."

In the savings market, balances held in savings accounts at building societies reduced by £0.6bn in November. Coles said there was little incentive for people to increase savings while the Bank Rate remained at low levels.