Building societies struggle as rest of finance sector sees growth

Chris Papadopoullos
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Building societies have been affected by the Mortgage Market Review (Source: Getty)
Finance firms ended 2014 strongly, except for building societies, new survey data shows.

Business volumes were reported to have increased by 64 per cent of financial services firms in the three months december, according to figures released by the Confederation of British Industry (CBI) and consultants PricewaterhouseCoopers.

This compares to seven per cent of firms who said business volumes were down.

“The upswing in growth among financial services firms continues on a solid footing, with overall optimism, business volumes and profits up,” said CBI director of economics Rain Newton-Smith.

“Building societies have struggled this quarter, likely as a result of the impact of the Mortgage Market Review [MMR].” The MMR is a new set of rules on mortgage lending.