Second-home loans pulled

ONE of the country’s biggest building societies has stopped lending to second-home owners amid a government crackdown on additional properties.

Leeds Building Society is the first major lender to pull its mortgages for second homes that are not let out, stating it instead wanted to focus on helping more first-time buyers on to the property ladder.

The country’s fifth biggest building society was set to withdraw its six second-home mortgages last night, but will continue to lend on buy-to-let properties and holiday homes.

It comes as the Government clamps down on second homes that are sat idle for much of the year. Local authorities will soon be granted the power to double council tax bills on additional properties not in use or let out for at least 70 days per year in an attempt to target empty holiday homes in tourist areas.

Richard Fearon, the chief executive of Leeds Building Society, said second homes were “not compatible” with getting more people on the property ladder. He added: “Second homes reduce the number of properties available for people to live in at a time when housing supply in the UK is inadequate to meet demand and needs to be increased.

“Any home other than a main residence usually lies empty most of the time, which does not serve [or] contribute to the local economy.”

There are almost 500,000 second homes in England. The pandemic triggered a surge in second home ownership, but friction with locals has become increasingly common.

Second-home owners have been accused of driving up house prices for first-time buyers and leaving homes empty in small communities.