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Leeds Building Society to trial new holiday let lending restrictions

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UK: Leeds Building Society is to trial restrictions on new lending for holiday homes in parts of Norfolk and Yorkshire that have become tourist hotspots.

The mortgage lender, which believes it is the first in the country to restrict new lending, is working with North Norfolk District Council and North Yorkshire Council to trial a ban on new loans for holiday lets in certain areas across the two counties, lasting 12 months from the end of March. The ban will apply to everywhere in North Norfolk, including popular seaside destinations such as Cromer, Wells-next-the-Sea and Sheringham, while locations in North Yorkshire to be affected include Scarborough, Whitby, Saltburn, Leyburn and Richmond.

Existing holiday let borrowers will be unaffected by the trial restrictions, but new mortgage applications for holiday lets in the relevant postcodes will now not be approved.

Leeds Building Society is aiming to discourage more people from turning their properties into holiday lets [rented out for 31 days or fewer] and open up new housing supply for local residents in the counties who are struggling to rent or buy a new home.

The landmark move by Leeds Building Society follows the UK Government’s recent announcement that it will reform planning laws to empower councils in England to make short-term lets in their area subject to a planning process, thereby preventing a “hollowing out” of communities.

The reforms will grant local councils more powers to control the proliferation of short-term lets in areas where high numbers of listings are said to be preventing local people from finding housing that they can afford to buy or rent.

The changes, which are part of a longer-term housing plan, are designed to “protect local residents from being pushed out of their communities by excessive short-term lets”, as well as “address anti-social behaviour and ensure local people can continue to live in the place they call home”, according to a government press release.

In addition, a new mandatory national register will be introduced to give local authorities the information they need about short-term lets in their area, and a new planning ‘use class’ will be created for short-term lets that are not used as a sole or primary residence.


The post Leeds Building Society to trial new holiday let lending restrictions appeared first on Short Term Rentals.
 
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