Gross mortgage lending by building societies and other mutual lenders was £3.0 billion in August.

This is up by 40% compared to the same month in 2011.

Mutuals took a 23% market share of gross lending in August, up from 16% in August 2011, and took 21% share of lending in the first eight months of the year.

Retail savings balances at mutuals rose by £1,158 million in August 2012, compared to an increase of £393 million in the same month last year. After interest credited is removed there was a net receipt of £418 million in August.

“Lending by mutuals grew substantially in August compared to the same month last year which continues the trend of increased levels of lending activity by mutuals over the year so far,” said Adrian Coles, director-general of the Building Societies Association.

“Lending by banks however fell by 13% in August, which follows a 9% reduction in July. Consequently mutuals continue to increase their market share, which was 23% in August, and well above the 16% in August last year.

“These figures show that mutuals are committed to lending to homebuyers, and of the initial 13 firms signed up to the Bank of England’s Funding for Lending Scheme, six are building societies. We expect more building societies to sign up in coming months, though it will take some time for the funds drawn from the scheme to feed into new lending.

“Savings balances at mutuals increased by over £1 billion in August for a second consecutive month, and were up significantly compared to August last year. With consumer price inflation on a downwards trend, the pressure on household finances eased somewhat allowing more money to be saved. The changes in deposits may also reflect consumers switching their accounts over to mutuals over the past two months as people opt for better service and a more ethical way of banking.”