Leeds BS to use seasonal income for holiday let affordability assessment

The mutual had previously used assured shorthold tenancy valuations in its assessment, and will now use an average of low, medium and high season expected income.

The figures should be provided by a letting agent from an approved list.

Martese Carton, Leeds Building Society’s intermediary distribution head, said: “This improvement gives our intermediary partners a better solution for their clients using more accurate rental projections across the peak holiday season and the remainder of the year.

“Holiday lets are already a popular option, and this change will be welcome news for those who are looking to diversify their property portfolio in this direction, especially at a time when more of us are taking staycations.”

Leeds Building Society has made several changes to its holiday let range in recent months, including the addition of a 60 per cent and 70 per cent loan to value (LTV) offering in March, and a 75 per cent LTV product in May.

It has also changed minimum income requirements, and now accepts joint applicants with a total income of £60,000 where one applicant earns less than £40,000.

More lenders have been entering, or reentering, the holiday let space as staycations become more popular and Covid-19 restrictions are lifted.

Recent entrants include InterBay, Market Harborough Building Society, The Cumberland Building Society, Darlington Intermediaries and Cambridge Building Society.