The Building Societies Association confirms the slowdown in the UK lending market with its latest figures for November 2004.
Building society gross advances amounted to 3,283m in November 2004, decreasing from 4,471m in November 2003.
Net advances were 800m in November 2004, down from 2,397m in November 2003.
Approvals (loans agreed, but not yet made) decreased to 2,999m in November 2004, from 3,904m in November 2003.
In the savings market, building societies had net inflows of 665 m in November 2004, up from 614m in November 2003.
BSA director-general Adrian Coles says: “The figures confirm the recent deceleration of mortgage lending with net advances down by more than a half compared with November last year. This is partly the result of the introduction of the new FSA regulatory regime, as societies bedded down new systems. However, there are longer-term factors at work and we expect 2005 to be, overall, a much quieter year than the one just finishing.”