Leeds Building Society will restrict mortgage lending on holiday lets in some tourist hotspots in England. The chief executive of Leeds Building Society, which is making the restrictions, said holiday lets have a “stranglehold” on the pipeline of homes available for local people in some locations.
The society has worked with North Norfolk District Council and North Yorkshire Council to set up a 12-month trial, during which it will stop new loans for holiday let homes. Lending will be restricted from the end of March.
Leeds Building Society chief executive Richard Fearon said: “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.” He added: “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.”
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Councillor Wendy Fredericks, portfolio holder for housing and people services at North Norfolk District Council, said: “In North Norfolk we have a really severe shortage of homes that people on local wages can afford. Increasing numbers of holiday lets reduce the number of rental homes available for year-round use by local people. So I welcome the move by Leeds Building Society to stop new lending on holiday lets in key areas.”
Councillor Simon Myers, executive member for culture, arts and housing at North Yorkshire Council, said: “We are pleased to support this initiative by Leeds Building Society. We welcome the fact that it is being specifically targeted at those locations where there are high concentrations of holiday lets.
“At the same time we feel it strikes a fair balance between the housing needs of local people and the importance of the wider tourism economy of North Yorkshire.” Ben Twomey, chief executive of Generation Rent, said: “Generation Rent is pleased that Leeds Building Society is acting on this issue and prioritising the necessity of homes over the luxury of holidays.
“This trial to restrict mortgage lending on holiday lets is a forward-thinking step that will hopefully help to improve the situation for renters in North Norfolk and North Yorkshire.” Selected areas in North Yorkshire will be affected. They are Scarborough, Whitby, Filey, Saltburn, Leyburn and Richmond.
The whole of the North Norfolk District Council area will also be included. This includes locations such as Cromer, Wells-next-the-Sea and Sheringham.
