Positive progress at building society despite ‘extraordinary pressure’ on households

Skipton Building Society has reported a robust performance in the first half of 2023, with group pre-tax profits of £148.9m (June 2022: £160m) and £3.4bn worth of mortgage advances – up 27% year-on-year.

Nearly 9,000 first-time buyers were helped by the society during this period, up 43% year-on-year, with financial advice customers up by 3.2%.

Stuart Haire, group chief executive, said: “In the face of extraordinary pressure on households, we are making good progress on our strategic priorities to help more people have a home and increase long term financial wellbeing.

“In my first six months leading the business we’ve created a unified group focused on three core divisions – Homes, Estate Agency, and Money.

“Despite the challenging headwinds, we’ve seen positive signs of improvement in the first half of the year as the housing market stabilises.

“Home buyers remain active but are exercising caution, with many adjusting their property expectations and their approach to financing while continuing to search for a home.”

The building society says its membership grew 3.1% to over 1.17m as it increased market share in both mortgages and savings.

It notes mortgage arrears of three months or more make up just 0.18% of the group’s mortgage accounts, compared to the industry average of 0.72%.

And in the rental market, the society says it has not seen an exodus of landlords. It explains that some landlords have tested the sales market and found it weaker than anticipated before returning their property to rental.

The group’s report adds: “We believe the housing market should be viewed over the long term.

“We have seen some volatility in pricing and demand during the pandemic and since interest rates started to rise, however home ownership aspirations remain and the UK continues to have a supply shortfall, therefore the UK housing market continues to be an attractive proposition.”