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BSA: Lending down in May
2 July 2008 10:30
Mortgage lending by building societies fell in May, according to new figures from the sector's trade body, reflecting the depressed state that the housing market is currently in.
Latest data from the Council of Mortgage Lenders has already indicated that total gross lending by mortgage providers fell by 2.3 per cent from April to £25.5 billion in May, which was also down by 19 per cent year-on-year.
Now statistics from the Building Societies' Association (BSA) have revealed that gross lending by its members stood at £3.28 billion in May, the weakest figure on record since February 2006 and down by 10 per cent from April and by 28.6 per cent from May 2007.
Approvals by building societies also dwindled to £2.34 billion, which was the lowest value of mortgages granted since January 2005 and marked a 26.6 per cent decrease from April and a 49.5 per cent drop from 12 months previously.
BSA director-general Adrian Coles attributed May's particular severe dip in lending to falling house prices and declining market activity, before forecasting that this state of affairs will persist for some time.
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