Leeds Building Society has announced its intention to enter pilot scheme partnerships with local authorities, aimed at putting homeownership within reach of more people by restricting new mortgage lending on holiday lets.
The society said local authorities were best placed to make decisions to balance the benefits tourism brings to the economy with the impact on the supply of homes for residents.
Leeds proposed a 12-month pilot scheme to assess the impact before seeking to extend to other areas.
Existing Leeds Building Society holiday let mortgage customers would be unaffected; only new lending will be restricted during the pilot schemes.
Earlier this year, the society began discussions with local authorities to restrict new mortgage lending on holiday lets.
In light of this, the society extended an invitation to any local authorities to contact Leeds Building Society if they wish to establish a pilot scheme in their area.
Richard Fearon (pictured), chief executive of Leeds Building Society, said: “Our purpose is to put home ownership within reach of more people, generation after generation, and the volume of holiday lets in some parts of the country can be a big barrier.
“We want to remove that obstacle. Mortgage lenders can be a valuable partner to local authorities seeking greater control over the growth of holiday lets.
“Entering a partnership will help find the balance between the significant role holiday lets can play in local economies and the detrimental impact they can have on housing for residents.”
