Leeds Building Society mentioned its gross mortgage lending fell 12% to £4.4bn final 12 months, because the home mortgage market contracted in 2023.
The mutual added that its internet mortgage loans fell 25% to £1.5bn, in its annual outcomes assertion, though its market share lifted by 4 foundation factors to 2%.
The fall outperforms wider market forecasts. UK gross mortgage lending is predicted to return in 28% decrease at £226bn final 12 months, in comparison with the earlier 12 months, as larger rates of interest dulled the urge for food of homemovers, in response to UK Finance information in December.
The society lent to 17,700 first-time patrons, representing a couple of in two new mortgages in 2023, up from one in three a 12 months in the past.
Its mortgage asset stability stood at a report of £21.8bn, up 7.4% from the earlier 12 months. Profit earlier than tax fell 17.7% to £181.5m over the interval.
Separately, the business says it has arrange a 12-month trial with North Norfolk District Council and North Yorkshire Council, which is able to see it cease new loans for vacation permits vacationer sizzling spots.
The agency says: “Each authority has identified where housing pressures are most serious and holiday let lending will be restricted in those areas from the end of March.”
Selected postcode places can be added to the building society’s methods to stop any vacation let mortgage purposes obtained in these areas from being accredited.
There are greater than 73,000 vacation houses within the UK, with the latest figures exhibiting an annual enhance of seven,000, in response to Generation Rent.
North Yorkshire was one among seven areas the place the expansion in vacation houses successfully minimize the provision of latest houses by half.
North Yorkshire Council govt member for tradition, arts and housing councillor Simon Myers says: “We welcome the truth that it’s being particularly focused at these places the place there are excessive concentrations of vacation lets.
“At the same time, we feel it strikes a fair balance between the housing needs of local people and the importance of the wider tourism economy of North Yorkshire.”
Leeds Building Society chief govt Richard Fearon says: “In some areas, vacation lets have grown to have a big stranglehold on the pipeline of houses available for native folks to dwell in and we wish to play our half in eradicating it.
“There have been a range of measures introduced by the government over recent years to give local areas additional powers to restrict holiday lets. This adds to their arsenal of options and does so in a way which leaves power in the hands of local communities.”
The transfer comes as native councils can be given larger energy to regulate vacation lets by making them topic to planning guidelines, underneath new Department for Levelling Up, Housing and Communities proposals introduced this week and attributable to come into pressure this summer season.
In 2022, Leeds Building Society pulled out of funding the purchases of second residential houses to give attention to FTBs.
