A building society mainly refers to a financial institution which is owned by its members offering saving and borrowing facilities to its members. The legal definition of a building society as rendered by The Building Societies Act 1986 points to the main four elements of a building society. These main characteristics for the core part of a building society which includes the main principal purpose of opening up of a building society followed by the decision on designation of powers and responsibilities. The Act also talks about the facilities so planned to be rendered by the building societies.
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The main aim of such building societies is to provide for saving as well as borrowing needs of members. History goes to prove that the first building society came to be formed around 200 years ago with some individuals who came together with an aim to co-operate and assist each other in building their own houses. These members contributed on a continuous basis which helped them all to make their own houses. Further these houses were allocated through a lottery system to members,which continued till the time every member had a house of their own. However, it was not a while to this system of owning a house that soon Bank And Building Societies started to borrow money from investors for building houses on a more fast track basis which lead to the beginning of the foundation of building societies.
It can be well said that a house which is and has been one of the basic necessity of all times can now become a reality with the help of building societies. Many feel that the cost they would incur for paying the rent can well be used to pay for the house. Add to this the ever so increasing rent costs by the landlords whose basic aim to make as much money and profit from such renting business.
It was in the 18th century that the building societies came to fore in the United Kingdom, which acted as saving and loan providing institutions. In the current times these building societies give tough competition to banks by offering consumers the same level of banking services in terms of deposits and lending. By 2008, there existed about fifty nine Building societies in the UK which accumulated funds amounting to over £360 billion. Building societies help many in fulfilling their dream without having to do much of a run around.
It can be well said that a house which is and has been one of the basic necessity of all times can now become a reality with the help of building societies. Many feel that the cost they would incur for paying the rent can well be used to pay for the house. Add to this the ever so increasing rent costs by the landlords whose basic aim to make as much money and profit from such renting business.
It was in the 18th century that the building societies came to fore in the United Kingdom, which acted as saving and loan providing institutions. In the current times these building societies give tough competition to banks by offering consumers the same level of banking services in terms of deposits and lending. By 2008, there existed about fifty nine Building societies in the UK which accumulated funds amounting to over £360 billion. Building societies help many in fulfilling their dream without having to do much of a run around.
