Building society bans mortgages on holiday let properties

Building society bans mortgages on holiday let properties


Todays other news


A building society has launched a pilot project banning mortgage lending on holiday lets in two tourist areas for 12 months.

Leeds Building Society will not lend on holiday lets in the North Norfolk and North Yorkshire council areas: the ban is to come in from the end of next month.

The society says it’s liaised with the councils over the holiday lets restrictions “as it has sought to balance local housing needs with the economic benefits tourism can provide.”

It follows a similar decision by the Society in 2022 when it became the first national mortgage provider to pull out of funding purchases of second residential homes, allowing it to instead increase lending to people getting on the property ladder. 

The society says it wants more emphasis placed on increasing the supply of homes, and a statement says: “The chosen postcode locations will be added to the building society’s systems to prevent any holiday let mortgage applications received in those areas from being approved. Existing holiday let borrowers are unaffected.”

The society’s chief executive, Richard Fearon, says: “This is another example of how we’re putting homeownership within reach of more people generation after generation. In some areas, holiday lets have grown to have a significant stranglehold on the pipeline of homes available for local people to live in and we want to play our part in removing it. 

“There have been a range of measures introduced by Government over recent years to give local areas additional powers to restrict holiday lets. This adds to their arsenal of options and does so in a way which leaves power in the hands of local communities. 

“We will learn through the trial how effective this measure can be in increasing supply of residential homes and gain greater insight on steps that can make a positive difference.” 

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Letting Agent Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Recommended for you
Related Articles
The analysis has been made by Octane Capital...
Some 130 brokers took part in this bank’s survey...
Tenants on the run-up to retirement age are the fastest...
A leading agent says there are renegotiations on prices of...
Reeves to slash Right To Buy discount on Wednesday...
Recommended for you
Latest Features
UJKALA says it now has 1,250-plus members for the first...
Zoopla says the sell-off by landlords may have peaked......
Affordability is now the name of the rental game, says...
Sponsored Content

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here