The boss of a green-thinking building society says growing awareness of environmental issues is helping stimulate its growth.

Paul Ellis, chief executive of Silsden-based Ecology Building Society, said concerns over climate change were now spreading to people who, in the past, had not regarded it as a priority.

Last year, the society - which specialises in ethical savings accounts which fund green mortgages for properties offering an ecological payback - saw assets grow to £55 million.

And today Mr Ellis predicted the organisation would break £60 million during 2005. He said last year's nine per cent growth in assets reflected "a growing awareness of environmental issues generally and, in particular, the fact that climate change is coming more and more to the fore. We help individuals to create properties that don't have a high impact on the environment and there are a growing individuals interested in that," he said.

In 2004, a fall in redemptions helped the society achieve record net lending of more than £5.7 million. There was also a 17 per cent growth in new mortgage advances compared to 2003.

The organisation specialises in lending for neglected properties, run-down buildings which can be renovated or converted for new use and energy-efficient new homes built ecologically.

Renovations represented the highest number of new mortgages in 2004, with 39 per cent for the repair and restoration of run-down or derelict properties. Among the buildings rescued were a chapel, a church, and a windmill.

Mr Ellis said the society was looking closely at the efforts to develop affordable homes in areas such as the Yorkshire Dales.