Figures published today from the Building Societies Association (BSA) show the continued growth of the sector, which has also been bolstered by the mutualisations of the Co-op Bank and Virgin Money.
In the six months to March 2025, building societies and mutual-owned banks grew their mortgage balances by £14.8bn, accounting for 52% of the growth in the mortgage market.
And they attracted cash savings balances of £17.4bn, a third of all cash saved in the period.
The BSA says the figures “demonstrate the growing strength of the financial mutual sector in the UK. Building societies and mutual-owned banks remain the driving force in the mortgage market whilst continuing to offer competitive savings rates.”
In the six months to March 2025 two shareholder-owned UK banks were acquired by building societies, becoming mutual-owned banks. Virgin Money was acquired by Nationwide Building Society in October 2024, and the Co-op Bank was acquired by Coventry Building Society in January 2025. These mutual-owned banks and building societies together hold assets of £648.3bn, says BSA, and account for 29% of total UK mortgage balances and a 23% share of UK savings balances.
Related: Report from the BSA annual conference
The sector provides crucial services to first-time buyers, says the BSA. “Despite the impact of the Stamp Duty deadline at the end of March, the housing market is being supported by strong growth in wages and a relatively resilient labour market,” it adds. “However affordability pressures remain an issue, especially for first-time buyers.
“Today’s figures demonstrate that building societies and mutual-owned banks are the backbone of the mortgage market, providing over half (52%) of the growth during the period. This continues the trend of the mutual sector being the consistent driving force in the market.”
Strong house price growth in high interest rates means affordability is still an issue for first-time buyers, adds the BSA. “Building societies continue to provide innovative solutions to support new homebuyers,” it says, “enabling them to provide 61,400 first-time buyer mortgages in the six months to March 2025 (figure not including mutual-owned banks).”
Meanwhile, in the six months to March 2025, building societies and mutual-owned banks attracted 33% of all UK savings, growing their balances by £17.4bn in the period.
Building societies and mutual-owned banks also hold 47% of all cash ISA balances, the figures reveal, totalling £191.3bn.
Building societies continue to offer competitive savings, the BSA says. In 2024 building society savers received £2.3bn more in interest on their total savings than if they had been paid the average rates offered by large banks (figure not including mutual-owned banks)
The building society sector is committed to supporting local communities, adds the BSA. “One way they do this is by retaining high street branches. Building societies’ current share of high street branches is 30%, more than double the proportion they had in 2013 (14%).” (Figure not including mutual-owned banks).
