Social historian Professor Carl Chinn MBE, speaking in London Fleet Street’s old Cheshire cheese pub to celebrate the 250th anniversary of the first building association.
It has been 250 years since the first construction society has founded, but their value is higher than ever.
Construction societies have made a positive contribution to the nation for more than two centuries – taking care of customer savings to help them buy their own homes.
This year, the 250th anniversary of the first construction association and the industry is stronger than ever, utilizing individuals, local communities and a larger economy.
Today’s construction societies serve about 26 million customers in the UK. Their total amount is nearly £ 525 billion and employs approximately 52,300 full-time and part-time staff.
During the six months of September 2024, construction societies increased their mortgage balance by nearly £ 12 billion, which corresponds to nearly three quarters (72 %) of all growth in the UK mortgage. They helped over 63,000 for the first time buyers to the real estate staircase during that time, their commitment to find solutions to challenges that face ordinary workers who seek to be homeowners.
The CEO of Robin Fieth, the Building Societies Association (BSA), respected the achievements of the industry in January at the Old Cheshire Cheese Cub in London Fleet Street to celebrate the 250th anniversary of the Ketley building society.
BSA, which represents all 42 British -Britain construction societies, both owned by banks, and the seven largest credit cooperatives, selected the venue, especially because Ketiley started in a pub where the patrons combined their savings to buy the country and build homes.
“This is an area that is really strong and grows again,” Mr Fieth told the guests.
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“With a fantastic commitment from our 250th anniversary, we will start doubling the size of the mutual and collaborative sector. Recognition that our business model is different and benefits consumers with the unique opportunity to place the construction societies at the heart of the UK economy.
“Today’s construction associations have never forgotten their purpose. They continue to challenge the low economic sustainability and difficulties of households in achieving and maintaining home -based ownership with innovative and customer -centered products and services. “
The first known construction society was founded in 1775, right at the beginning of the Industrial Revolution. When people floated into cities and cities for Midlands and Northern work, there were so few decent homes that many of them were forced to live in overloaded slums.
However, one man – Richard Ketiley, the landlord of Birmingham’s Golden Cross – invented an ingenious solution. By recognizing the need for a better home for families in his community, he caught at the end of the Tankard Bar, and made regular savings.
When there was enough money in the pot, they used it to buy the country and build a house by pulling a lot to decide who gets it. They continued to rescue until they had built a home for each member of the group for families and community and the birth of the first construction society. The Old Golden Cross pub site now has plaque in honor of Richard Ketley and his role in establishing the first construction society in the world.
Social historian Carl Chinn MBE told the history of construction societies from 1775 to the present day, explaining that early construction associations were all founded and owned by their members.
This is still the case today. British British Construction Associations in the UK are all “mutually owned”. In other words, they are owned by their customers, which means that they are not driven to maximize profits. They deserve enough profit for organizations to be safe and sustainable, but additional profits are returned to business, which is reflected in their prices, products and customer service, and support for their communities.
“It is really important that we admit that the pubs were crucial to the mutual start,” said Professor Chinn.
“Trade unions are mutual, friendly societies are mutual, construction societies are mutual. So what do we mean by this? For me, it is a meeting for a group of people who cooperate in a common interest through a common goal. Each person gave the same amount of the same proportion. Some of them bought more than one share, but each share would be the same price and everything was distributed equally so that each member would get the house at the end. “
When the first construction society was established in Birmingham, much more followed, including one of the female pubican of Sarah Northwood. Next came construction associations in Leeds and Sheffield, and by 1835 there were about 1000 in the whole country.
The structure of construction societies also changed. The original building associations ended when each member had his or her own home. However, from 1840 onwards, some construction associations began to accept savings from members who were not necessarily potential homeowners, thus creating today’s “permanent” building societies.
Mr Fieth also talked about the flexibility of the industry over the years and the fact that it has always remained faithful to its value. He said that “properly diverse financial service” is vital, especially when times are tough.
“In 1900, the United Kingdom had nearly 2,300 building associations with a total of £ 60 million (which today corresponds to £ 6.3 billion),” he said. “Today, there are 42 construction societies with a total of £ 519 billion. It’s a success story.
“That’s why we have been campaigning for so long to put the financial mutual back to the core of the future of the UK Financial Services. We want a very diverse sector that serves the people of the United Kingdom and serves the benefit of our society. It’s the core of what we do. “
The 250th anniversary celebration of the first building association will continue throughout 2025, and events in Westminster and Develful countries, the Consumer Campaign and the annual conference of the construction associations in May.
For more information about building communities, contact Kate Creagh at [email protected] or [email protected].
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