Abstract

Building societies are financial intermediaries who direct the transfer of funds from investors to borrowers. The central role of building societies over their long history has the financing of housing. This function has placed building societies in pivotal position both within the finance and housing sectors for nearly two centuries. Building societies are of particular interest due to their distinct history and their importance in the UK economy. It may be stated that building societies emerged as a form of housing finance based on principal of common or mutual ownership based on principal of self-help. This chapter attempts to map the development of UK building societies through their initial growth towards their position in the UK economy today. Emphasis is placed on the changing relationship between building societies and government. This issue is of particular interest due to the movements initiated in the 1980s towards greater autonomy of building societies and the changing role of government involvement in housing finance.