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Optimism expressed by building societies

Optimism expressed by building societies

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Building societies are remaining positive in the face of global economic slowdown, the Building Societies Association (BSA) has said.

According to the BSA, 70 per cent of building society bosses are optimistic about the year ahead.

And there has been a record amount of money being squirreled away in these financial institutions in the past eight months, the body declared.

Director general of the BSA Adrian Coles said that building societies have not been as strongly affected by the US subprime mortgage market problems, nor do they rely upon international money markets as much as banks.

"The housing market is going to see a slowdown but CEOs [chief executive officers] still have confidence in areas such as buy-to-let although they see house prices as likely to fall in 2008," he said.

He added that bosses are "confident" in the face of a "tough" correction in the housing market.

Earlier this week, development director at iammoving.com Peter Beckett advised first-time buyers to wait and see how the housing market will settle.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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