Housing market deceleration confirmed

Building society gross advances amounted to £3,283 million in

November 2004, decreasing from £4,471 million in November 2003.

Net advances were £800 million in November 2004, down from

£2,397 million in November 2003.

Approvals (loans agreed, but not yet made) decreased to £2,999

million in November 2004, from £3,904 million in November 2003.

In the savings market, building societies had net inflows of

£665 million in November 2004, up from £614 million in November 2003.

Building society net receipts into cash ISAs were £52 million in

November 2004.

Commenting on the mortgage market, Adrian Coles, Director-General of The Building Societies Association said:

"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 terms factors at work and we expect 2005 to be, overall, a much quieter year than the one just finishing.

On the savings side Mr Coles said: "Despite the usual seasonal downturn, inflows remain at a high level. Good interest rates and doubts about the wisdom of further borrowing have contributed to the strong recovery in saving inflows over the last six months."