Mortgage lending on second homes in Norfolk to be restricted

Leeds Building Society has worked with North Norfolk District Council to set up a 12-month trial during which it will stop new loans for holiday homes.

New mortgages for short-term lets, such as properties on Airbnb, would be included in the trial, as the society classes them as holiday lets under its criteria.

Existing holiday let borrowers will be unaffected during the trial which starts in March.

The whole of the North Norfolk District Council area will be involved which includes Cromer, Well-next-the-Sea and Sheringham. 

Last year there were plans to limit second and holiday homes in north Norfolk after Duncan Baker, North Norfolk MP, said they were "hollowing" out coastal communities. 

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.

Wendy Fredericks, NNDC deputy leader and portfolio holder for housing and people services (Image: NNDC)

“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 added: “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.

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