Cromer

Lending block on holiday lets

Just Regional
Mar 11, 2024 2 mins read

A major lender has decided to restrict mortgages for people looking to buy homes as holiday lets in north Norfolk.

Leeds Building Society is bringing the new restrictions in for two of the country’s main holiday hotspots – north Norfolk and North Yorkshire – this month.

PHOTO: Ashley Pickering

Working with North Norfolk District Council, the 12-month trial will stop new loans for holiday-let homes and it is hoped it will help aspiring homebuyers, who are often priced out of the local market.

The society says it has sought to balance local housing needs with the economic benefits tourism can provide.

It follows a move in 2022 when it became the first national mortgage provider to pull out of funding purchases of second residential homes.

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.”

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.

“There have been a range of measures introduced by the 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.”

Existing holiday-let borrowers will be unaffected by the changes.

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