Leeds Building Society has changed the way it assesses rental income for holiday let purchases.

The society will now evaluate affordability for mortgages on holiday let property using an average of low, medium and high season expected rental income, gathering evidence from a letting agent on its approved list.

Previously, Leeds based affordability on assured shorthold tenancy (AST) valuations. It says the new approach is intended to better reflect a holiday let’s earning potential.

Leeds Building Society head of intermediary distribution Martese Carton says: “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.

In May, the building society added products to its holiday let range at 75% LTV.