A restricted holiday let is a property that has planning or usage restrictions limiting its occupancy to short-term holiday use only.
Local planning permissions mean the property cannot be used as a primary residence or long-term residential tenancy, and can only be used as accommodation on a short-term rental basis.
This is common in areas like Devon and Cornwall, where restrictions are implemented to preserve housing stock for residential use and to mitigate tourism’s impact on local communities.
HTB will go up to a maximum loan to value (LTV) of 65% for restricted holiday lets and an increased income coverage ratio (ICR) for holiday lets in personal names from 125% to 140%.
The firm said their “distinct regulatory and market challenges” need a “nuanced approach”.

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The lender’s “strategic move” shows its “ability to adapt to evolving regulations and market demand, while providing tailored solutions for professional investors”.
Alex Upton, managing director for specialist mortgages and bridging at HTB, said: “Restricted holiday lets represent both complexity and opportunity in today’s market. As planning rules tighten and tax reforms take effect, investors need the right financial support to adapt and thrive.
“At HTB, we specialise in transforming challenges into opportunities. This expansion reflects our commitment to equipping brokers with the expertise and tailored solutions they need to help their clients succeed in this growing niche.”
Andrea Glasgow, sales director for specialist mortgages at HTB, added: “We know brokers are seeing increased demand for restricted holiday lets as investors look to diversify and respond to market changes.
“What they need from us is clear – products that reflect the intricacies of this market, paired with expert support and quick decisions. This expansion ensures brokers can confidently guide their clients, knowing HTB provides the tools and partnership they can rely on.”