The Building Societies Association has launched a new Building Society Sector Growth Plan at a Westminster reception marking 250 years of the building society movement.
The plan calls for reforms to unlock the sector’s growth potential and support building societies in expanding their role in homeownership, savings and community resilience.
The BSA said its proposals would help financial mutuals deliver greater value for members and enable fair competition with banks.
The plan sets out two key reforms: improved access to mutual capital by removing barriers that restrict societies from financing growth and innovation, and capital regulations that better reflect the sector’s lower-risk approach and support a level playing field.
The BSA said these changes would allow building societies to accelerate innovation, strengthen communities and further support first-time buyers.
It added that the sector has already grown more inclusive over the past 15 years, contributing £7.2bn to the UK economy annually, providing £4bn in additional benefits through competitive interest rates and rewards, and serving 27 million members.
The association noted that building societies hold 29% of the UK mortgage market, 37% of all first-time buyer lending and 47% of cash ISA balances, and maintain 35% of high street branches.
It said 95% of employees are based outside London, highlighting the sector’s role in regional economies.
Building societies are also leading on innovative initiatives, including new first-time buyer products, financial education and UK Savings Week.
The BSA argued that, with appropriate capital treatment, the sector could expand these efforts significantly.
To deliver change, the association said building societies must have a stronger presence in national and local policymaking on issues such as housing, financial inclusion and the future of high streets.
Robin Fieth, chief executive of the Building Societies Association, said: “We are not asking for special treatment.
“We are asking for recognition of the vital role building societies and other financial mutuals play in delivering inclusive growth, financial resilience, and long-term value for communities across the whole of the UK.
“We are asking for a seat at the policy table. In 1775, our founders were the disruptors and innovators of their time.
“Today, that remains the case. Our growth plan urges the government to stand by its manifesto pledge to double the mutual and co-operative economy in the UK and put building societies at the heart of a fairer, more resilient economy for everyone.”
The Westminster event followed receptions at Holyrood, Stormont and the Senedd as part of the sector’s anniversary celebrations.
