Net mortgage lending by building societies increased to £314 million in September, from -£37 million in August, but was still 47% lower than the figure for September last year, the Building Societies Association (BSA) has said.

Gross mortgage lending by building societies was £3.1 billion, a decline of 22% on September 2007, as buyers continue to stay away from the market.

Commenting on the figures, Adrian Coles, Director General of the BSA, said: “With the housing market depressed as house prices continue falling and with confidence amongst potential homebuyers low, it is no surprise that mortgage lending is down on last year, and the mortgage market is unlikely to recover for some time. Nevertheless, the increase in net lending in September is to be welcomed.”