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Is it time to stop lending on holiday lets?

Our Chief Executive Officer, Richard Fearon, has written in The Times about our new proposals to potentially restrict new lending for holiday lets in certain areas where it’s felt the negatives outweigh the positives.

In the article, Richard discusses how we’re working with local councils on the 12-month pilot scheme in areas where there’s local support for taking this action^. He also talks about the impact the move could have on making homes more affordable, accessible, and available.

Research suggests that in some areas, the growth of holiday lets is effectively cancelling out the supply of new homes.Although holiday lets can have a positive effect on a local economy, they also use up homes that could go to first time buyers. One way to immediately improve supply of available homes is by addressing the increasing number of holiday lets.

Every generation deserves a place to call home, but change is needed to help make this happen.

In September, we published research that showed 426,000 lost first time buyers will be priced out of the housing market by 2027. On top of the question of affordability, there are also issues with the number of homes available to buy. Centre for Cities estimates 4.3 million homes are missing from the UK’s housing supply due to a shortfall from failing to meet homebuilding targets.

We’ve already taken action to stop new lending on second homes, and we’re determined to take action to tackle the causes, and not the symptoms, of our home ownership crisis. We believe these proposals show our further commitment to helping first time buyers.

Read Richard's article

^There are no immediate plans for withdrawing from new holiday lets lending or product exits. Any decisions will be based on the 12-month pilot scheme and a final decision from local authorities.

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