The building society revealed it experienced its biggest ever month for holiday let purchase applications in September 2020 during what it described as a ‘busy second half’ to the year.

It said the sector’s bounceback was part of the housing market’s strong recovery following the first lockdown and the introduction of the stamp duty holiday.

What’s more, last month the health secretary Matt Hancock advised Brits to hold off booking a holiday abroad but hinted there would be the chance to enjoy a break in the UK with hopes of a ‘great British summer’

Matt Bartle, director of products at Leeds Building Society, said: “Holiday Lets are a popular choice for our buy-to-let borrowers with the potential for higher yield returns.

“Ongoing pandemic-related uncertainty around international travel adds to the likelihood that more Britons will holiday in the UK this year.

“Therefore a suitable property in a prime tourist area may offer an opportunity for Buy to Let landlords to diversify their portfolio with a short let holiday property.

“We’ve expanded our Holiday Let range to offer more choice to borrowers, who may wish to take advantage of this under-served part of the mortgage market.”

The new range consists of two five-year fixed rate products with no product fee:

• A 3.69% five year fixed rate product available up to 60% LTV (loan to value); and
• A 4.29% five year fixed rate product available up to 70% LTV

Each comes with a free standard valuation. An additional incentive of fees assisted legal services is included for remortgages.