Building society mortgage approvals rise

Mortgage approvals by building societies in March were £1,542 million compared to £742 million in February.

Adrian Coles, Director-General of the Building Societies Association said: "As might be expected at this time of year, mortgage approvals in March rose sharply. Even adjusting for seasonal influences this is the highest figure since November. Although this may suggest a very slight recovery in activity in the housing market over the next few months the environment nevertheless remains very challenging."

Building societies experienced a small net withdrawal of £196 million from savings accounts in March. However, with interest credited, balances rose by £2,140 million.

Mr. Coles commented: "The Bank Rate was reduced to 0.5% at the beginning of March, and the figures show the impact of low interest rates and economic conditions on people's ability and willingness to save.

"However, it is pleasing that despite this, an extra 450,000 savings accounts were open at building societies at the end of March compared to the start of the year. Over £1 billion was deposited in building society savings accounts during this period and the sector's share of the retail savings market increased from 20.2% at the end of February 2008 to 21.4% at the end of February 2009."

Building Society Statistics March 2009

Approvals in March 2009 were £1,542 million compared to £2,893 million in March 2008.

Building society gross lending amounted to £1,462 million in March 2009 compared to £3,633 million in March 2008.

Net lending by building societies in March 2009 was minus £717 million compared to £781 million in March 2008.

Building societies had a net withdrawal of £196 million in March 2009 compared to a net receipt of £1,258 million in March 2008.

Building societies had a net receipt of £135 million into Cash ISAs inMarch 2009, compared to a net receipt of £529 million in March 2008.