Working with North Norfolk District Council (NNDC), Leeds Building Society has decided to restrict granting mortgages to those wishing to buy properties in North Norfolk to be used as holiday lets. The scheme will run for a 12-month trial period. The society states that it is seeking to balance local housing needs with the economic benefits tourism can bring.

Will this move help local people buy or rent a home in North Norfolk? I am sceptical, but it is a case of wait and see.

The demand for second homes in North Norfolk has rocketed over the past few years, causing property prices to escalate. The advent of Air B&B, a popular form of holiday accommodation, has aggravated that situation. It has attracted those with the cash available to buy houses and flats purely as a source of income from short-term letting. Estate agencies have been busy coping with demand, and a look online reveals numerous websites promoting the sale of homes in North Norfolk for holiday letting.

For locals, buying a property in the coastal area is way out of reach of their available income to fund a mortgage. Likewise, long-term rental properties are now expensive and few and far between. However, I don’t think this scheme will have an impact unless numerous other mortgage providers, including the banks, follow suit. Government policy is needed to address the issue, as are tighter planning laws.

The effect of holiday properties and second homes is already apparent in villages such as Wells and Blakeney. In the winter, a walk around these places and numerous others like them reveals silence and little or no activity.

The portfolio holder for housing and people services at NNDC, Wendy Fredericks, stated:

“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.”

The chief executive of Leeds Building Society, 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.”

In July 2022 the Overview & Scrutiny Committee of NNDC held a meeting to discuss holiday homes in North North. I quote from the website: “The trend toward self-contained holiday accommodation may be contributing to the increased numbers of second and holiday homes.” Note the use of the word ‘may.’ The word ‘is’ would have been far more appropriate.