KENT Reliance is the fastest-growing building society in the UK for the third year running, according to an influential survey.

The annual Financial Services Report prepared by the KPMG auditing firm said the mutual society, based in Chatham with outlets countywide, had increased assets by 23 per cent in 2003-2004 to £1.03 billion.

This followed rises of 50 per cent in 2001/02 and 37 per cent in 2002/03.

But Mike Lazenby, chief executive, revealed that the society had continued to grow since then, with assets up a further 21 per cent to £1.25 billion.

He said: "Our five-year rolling growth rate is 211 per cent compared to an industry average of 50 per cent."

At the same time, the Society has slashed costs to boast one of the lowest management expense ratios in the industry.

Kent Reliance is expected to reveal a profit of around £4 million in its next annual report.

Kent Reliance has achieved record growth through a number of measures, including rate-topping products, outsourcing processes to Bangalore, India, and substantial investment in IT.

The society has also won national awards, most recently a Your Money accolade for the children’s Wishmaker account.

However, the society also faces the challenge of finding new agency partners after the collapse of First Call Mortgages in Maidstone and the decision by Swale Housing Association to pull out of cash-handling arrangements.

"There are a number of challenges but by and large we are very happy with the way things are going," Mr Lazenby said.