Signs of housing market cooling

· Building society gross advances amounted to £4,707 million in

August 2004, increasing from £3,762 million in August 2003.

· Net advances were £1,959 million in August 2004, up from £1,397 million in August 2003.

· Approvals (loans agreed, but not yet made) decreased to £3,638 million in August 2004, from £3,920 million in August 2003.

· In the savings market, building societies had net inflows of

£1,191 million in August 2004, up from £288 million in August 2003.

· Building society net receipts into cash ISAs were £91 million in

August 2004.

Commenting on the mortgage market, Adrian Coles, Director-General of

The Building Societies Association said:

"The figures suggest that we have reached a turning point in the

housing market. Net advances are 51% higher than a year ago, reflecting the strength of the housing market in the Spring and early Summer. However, approvals (loans agreed but not yet made) are well down (by over 12%) suggesting that lending will decline in the Autumn."

On the savings side, Mr Coles said:

"Savers have rediscovered the attractions of building society

accounts. Inflows were the highest since March 2001 * rising interest rates and a lacklustre stock market leave serious investors with an obvious choice * a building society savings account."