Building Societies: Regulation
The question
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the current regulatory framework for mutual building societies.
Answered by Treasury
Building societies play an important role in supporting home ownership and economic growth. Ministers and officials regularly engage with building societies and the wider mutuals sector to discuss their business, understand the barriers they face and consider opportunities to support their growth and better serve their members.
The Government is committed to creating the conditions that enable the sector to flourish. In December 2025, the Prudential Regulation Authority and Financial Conduct Authority published their joint Mutuals Landscape Report, which set out the sector’s regulatory framework and identified opportunities for growth-focused reform. As part of that initiative, the Prudential Regulation Authority removed the Building Societies Sourcebook, supporting a more proportionate regulatory framework for building societies.
In addition, the Government laid a statutory instrument before Parliament in July 2026 that would support the building society sector by reducing unnecessary administrative burdens and providing greater funding flexibility.
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