"While banks retreat from high streets and cut the local services communities rely on, building societies are doing the opposite – not only are they keeping branches open, but they are investing in them and opening new ones"
- Robin Fieth - Building Societies Association
Figures released today indicate that the building society sector continues to strengthen its position across the UK mortgage and savings markets. The latest data shows growth that exceeds its overall share of balances, offering consumers an alternative to banks that prioritise shareholder returns.
In the six months to September 2025, building societies and two mutual-owned banks increased mortgage balances by £7.5 billion to £493 billion. Cash savings balances rose by £8.8 billion over the same period, reaching £496 billion.
Supporting homeownership remains a central focus for the sector. Although building societies and mutual-owned banks hold 29% of the UK’s outstanding mortgage balances, they delivered 32% of the country’s net lending during the period. They approved more than 220,000 mortgages, representing 31% of all approvals.
Their role in supporting first-time buyers also remains notable. Between April and September 2025, they issued 59,861 mortgages to first-time homebuyers, reflecting continued efforts to address affordability challenges and barriers to homeownership.
The member-owned structure of building societies enables them to prioritise value for consumers rather than external shareholders. In the past year, members received an additional £4 billion in enhanced value compared with the rates and benefits typically offered by banks. At a time when many banks have reduced face-to-face services, building societies continue to maintain and invest in their high street presence. Some have expanded their branch networks or adapted branches for community use, such as hosting local charities and organisations. As a result, they now account for 35% of all high street branches, up from 14% in 2012.
Support for local communities also includes financial education initiatives and programmes such as UK Savings Week, which aim to improve financial confidence and resilience among households.
Commenting on the half-year performance, Robin Fieth, chief executive of the Building Societies Association, said, “Consumers are increasingly looking for providers that offer long-term value, fairness and inclusive access to services in their communities. These latest figures show that building societies continue to meet that demand, supporting people to buy their first home and helping households build their financial resilience."
“As member-owned organisations, our focus is on delivering real benefits to consumers and ensuring that value stays within local communities rather than being directed to external shareholders."
“While banks retreat from high streets and cut the local services communities rely on, building societies are doing the opposite – not only are they keeping branches open, but they are investing in them and opening new ones."
“Last week we launched the Building Society Sector Growth Plan, which called on government and regulators to drive capital reforms that would unlock the full potential of the sector. These changes will enable building societies to help even more people to buy their own home, safeguard their savings and strengthen communities across the UK. We’re not asking for special treatment, just recognition of the vital role building societies play in ensuring the UK has a diverse and competitive financial services market and the ability to realise the full potential of the sector.”
