UK Parliament Passes Bill Increasing Financing for Building Societies

04 Jun 2024

On 24 May 2024, the Building Societies Act 1986 (Amendment) Act 2024 was passed into law in the UK. 

The bill now allows UK building societies to remove certain types of wholesale funding from counting against their funding limits. The aim is to level the playing field between banks and building societies, allowing more first-time buyers to buy their homes through these mutually owned business societies. 

Furthermore, the proposed changes aim to enable building societies to lend more and ensure more mortgage loans are available at competitive rates, helping first-time buyers and those further up the housing ladder. 

The bill will allow societies to limit the financial burden placed upon their members' savings and expand access to other financing options.

To read more about the background and context of the bill, click the link below. 

https://commonslibrary.parliament.uk/research-briefings/cbp-9922/#:~:text=The%20Building%20Societies%20Act%201986%20(Amendment)%20Bill%20would%20enable%20societies,those%20which%20apply%20to%20banks.

You can also read the bill attached below.