The Intermediary – September 2026 - Flipbook - Page 9
BUY-TO-LET
In focus
with holiday lets make a good return and provide
nationally, and these concerns come into sharper
a good service, tax rises and frustration over the
focus in tourism-heavy areas where holiday
lack of affordable new homes being built has
accommodation accounts for a significant share
caused resentment.”
of local stock.
However, this experience is not universal.
James Tuck, business development manager
Tuck says: “This is a highly sensitive topic,
whereby the answer likely differs from region
(BDM) at Harpenden Building Society, says
to region. It is undeniable that tourism is a
demand has remained steady following the
positive for local economies. However, when the
pandemic era surge.
properties being let out to tourists are the ones
He says: “Change to any tax regime causes
which otherwise would be residential, this can
uncertainty and it is likely that this did result in
have the opposite effect and reduce the housing
some investors selling their holiday let properties.
stock, which would otherwise be available to local
However, now that it has been some time since
families and first-time buyers.”
the changes, investors have been able to assess
the tax implications, and from what we have seen,
In some parts of the country, this tension
has moved beyond debate and influenced
it has not resulted in investors leaving the market
mortgage policy. In 2024, Leeds Building Society
in significant numbers.”
announced it would be restricting new holiday let
Others paint a similar picture. Robert Ford,
head of mortgage origination at Hodge, says the
“oft-predicted exodus of established landlords
from the market simply hasn’t occurred,” with
lending in selected areas of North Yorkshire and
North Norfolk.
Martese Carton, director of mortgage
distribution at Leeds Building Society, says: “We
new borrowers also purchasing holiday let
worked closely with North Yorkshire Council and
properties across the country.
North Norfolk District Council to identify where
Meanwhile, Ward notes that “while the
growing demand for holiday accommodation
tax changes are a factor, most experienced
was adding to already stretched local housing
investors are looking at the overall returns and
markets and making it harder for people to
sustainability of the investment rather than
access homeownership.
making decisions based on tax treatment alone.”
The cost to communities
“We restricted holiday let lending in selected
parts of those authority areas to support our
purpose of putting homes within reach of more
While the market may still be finding its footing
people. This built on our earlier decision to stop
following recent changes, questions remain
lending on second residential homes, allowing us
over the place of holiday lets within the wider
to focus more of our support on those looking to
housing
using ecosystem. Supply remains constrained
buy a home to live in.”
p
"I know it's a dream house, but the numbers are a nightmare"
September 2026 | The Intermediary
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