Leeds Building Society has announced agreements with North Yorkshire Council and North Norfolk District Council to stop new loans on holiday let homes during a 12-month trial that starts at the end of March.

“This decision further increases the Society’s support for first time buyers by removing one of the many obstacles they face to accessing a supply of available and affordable homes,” said Leeds.

“The Society has liaised with the councils over the holiday lets restrictions, as it has sought to balance local housing needs with the economic benefits tourism can provide.”

Leeds Building Society CEO Richard Fearon said: “We’ve been helping people get on, and stay on, the housing ladder for nearly 150 years, but home ownership has rarely been as unaffordable, inaccessible, and unavailable as it is today.

“We want to change that and our decision to stop new loans on holiday let homes in North Norfolk and North Yorkshire for a 12 month trial is another example of the Society acting in the interests of first time buyers.

“In some areas holiday lets have grown to have a significant stranglehold on the pipeline of homes available for local people to live in.

“Our decision adds to the arsenal of options available to local authorities to balance local housing needs with economic benefits in a way which leaves power in the hands of the local authorities.

“We will learn through the trial how effective this measure can be in increasing the supply of residential homes and gain greater insight on steps that can make a positive difference.”