New figures have revealed that building society gross advances amounted to £2,147 million in February, increasing from £2,112 million in January.

While approvals (loans agreed, but not yet made) increased to £2,804 million in February, from £2,205 million in January, in the savings market, building societies' had net inflows of £464 million in February, increasing from -£348 million in January.

Meanwhile, total lending increased in February by £10.0 billion to £808.0 billion. The rise compared with January's rise of £7.3 billion and the recent monthly average of £6.8 billion.

Forum Response: Building Societies Association

Adrian Coles, director-general of the Building Societies Association, told ePolitix.com: "The most encouraging aspect of this set of data is the sharp increase in building society approvals in February - up 20 per cent on a year earlier.

"This suggests that building society lending will rise sharply in the spring, reflecting both the strength of the housing market as a whole and the attractiveness of the mortgage products currently on offer from building societies.

"As expected the flow of funds turned positive again in February with almost half a billion pounds attracted after taking account of withdrawals. A further significant inflow is to be expected in March as the mini-cash ISA season reaches a climax."

Forum Response: British Banking Association

Ian Mullen, chief executive of the British Banking Association, told ePolitix.com: "Much of the increase in lending to the financial sector, and securities dealers in particular, arose from higher market activity and was short-term in nature. It is likely to have already been repaid.

"Overall lending to individuals rose by a similar amount as in January. A slightly weaker rise in mortgage lending was offset by stronger consumer credit, a rise in credit card borrowing reflecting the growing sophistication of consumers taking advantage of offers to move balances to cards charging lower interest rates.

"The continued growth of commercial and residential property prices, particularly in the South East, could well lie behind the continued strength of lending to property companies."