Building society lending remains subdued

The latest figures from the Building Societies Association (BSA) reveal, although lending was broadly similar to recent months after seasonal factors were adjusted for, the market is still very depressed compared to previous years. Mortgage approvals in August 2009 were £1.2bn, a huge drop compared to £2.8bn in August 2008. In the savings market, balances held in savings accounts fell £202m in August. Excluding any interest credited to accounts, building societies experienced a net withdrawal of £473m. Adrian Coles, director-general of the BSA, says activity will not return to normal ...