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Building Societies in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Building Societies Market Research Report | SIC K64.192 | Mar 2017

A good foundation: Strong house prices have supported growth despite economic uncertainty in the current year

IBISWorld’s Building Societies market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

Report Snapshot
Market Share of Companies
Coventry Building Society Coventry Building Society market share
Nationwide Building Society Nationwide Building Society market share
Yorkshire Building Society Yorkshire Building Society market share
Industry Statistics & Market Size
Revenue
£15bn
Annual Growth 12-17
1.0%
Annual Growth 17-22
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Profit
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Employment
40,788
Businesses
43
Industry Threats & Opportunities
  • The industry has recorded relatively steady growth, following a period of significant decline
  • A tightening regulatory landscape has constrained industry revenue growth
  • The industry is expected to consolidate further and profit margins are expected to rise over the next five years
  • ... purchase to read more

Industry Analysis & Industry Trends

The industry has returned to growth after declining heavily during the financial crisis. Building societies weathered the financial crisis relatively well compared with the banking industry, which required massive government bailouts. This reflects the fact that building societies are more risk-averse. The industry has expanded during the past five years, since government initiatives introduced to stimulate the housing market, low interest rates and rebounding economic conditions have stimulated demand for residential mortgages. Revenue is expected to increase at a compound annual rate of 1% over the five years through 2016-17.

In the current year revenue is expected to grow by 1.5% to £14.7 billion... purchase to read more

Industry Report - Starting a New Business Chapter

The industry is characterised by high and increasing of barriers to entry. Barriers include entrenched branch networks, reputation, loyal consumer bases, increasingly stringent regulatory requirements and access to initial capital.

The vast majority of building societies are well established in their regional markets and have strong ties to the community and its heritage. Consequently, any potential entrant is likely to face great difficulty in competing with existing operators that already have scale advantages regarding branch networks and an extensive consumer base. Fur.. purchase to read more

Additional Insights for the Building Societies Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Building Societies Industry are

  • Having a good reputation
  • Management of a high quality assets portfolio
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Number of residential property transactions and Official bank rate in the Building Societies industry impact industry performance... purchase to read more

     


    Industry ProductsRelated Reports

    What is the Building Societies Industry?

    Building societies are cooperative financial institutions that are owned by their members (i.e. their customers, depositors and borrowers). Like banks, they take deposits and provide banking and financial services, particularly mortgage lending. Unlike banks, however, profit is distributed among its members rather than among external shareholders.

    Industry Products
    Residential mortgagesCommercial loansPersonal loansOther fees
     
    Industry Activities
    Accepting deposits from membersLending to membersResidential financing (mortgages)


    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Number of residential property transactions
  • Official bank rate
  • Ratio of household debt to disposable income
  • Consumer confidence index
  • House price index
  • Current Performance
  • Building back up
  • Government assistance
  • Regulations

    restrict growth

  • Constrained margins
  • Chart: Revenue Growth
  • Industry Outlook
  • Slowdown
  • Demand developments
  • Industry changes
  • Improving profitability
  • Table: Building Societies Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Building Societies Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Clothing Manufacturing
  • Department Stores
  • Consumers
  • Key Selling Industries
  • Banks
  • Consumers
  • Products & Services
  • Residential mortgages
  • Commercial loans
  • Personal loans
  • Other fees
  • Chart: Building Societies Industry Products and Services Segmentation
  • Demand Determinants
  • Interest rates
  • Economic climate and consumer confidence
  • Residential housing market
  • Demand for substitutes
  • Major Markets
  • First-time buyers
  • Other buyers
  • Businesses
  • Investor buyers
  • Personal loans and fees
  • Chart: Major Market Segmentation for the Building Societies Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Interest costs
  • Wages
  • Loan write-offs and provisions
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Building Societies
  • Basis of Competition
  • Internal competition
  • External competition
  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Building Societies Industry
  • Industry Globalization
    Major Companies
    Nationwide Building Society
    Yorkshire Building Society
    Coventry Building Society
  • Table: Nationwide Building Society - financial performance
  • Table: Yorkshire Building Society - financial performance
  • Table: Coventry Building Society - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Building Societies Industry
  • Chart: Tools of the Trade: Growth Strategies for Success
  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth
  • Regulation & Policy
    Industry Assistance
    Key Statistics
  • Table: Industry Data for the Building Societies Industry
  • Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
    Demutualise
  • When a mutual company owned by members converts to a company owned by shareholders. In effect, members exchange their rights of use for shares.
  • Interest Margin
  • The ratio of net interest (interest paid minus interest received) to interest received.
  • Libor ( London Interbank Offered Rate)
  • The interest rate at which banks offer to lend funds (wholesale money) to one another in the international interbank market.
  • Retail Deposits
  • A sum of money held in a building society on behalf of an individual.

  • Why Buy this Report?
    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Building Societies:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Building Societies market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Building Societies, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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