Second home surge pushing out FTBs

09-Oct-2007

New research from Nationwide has revealed that more people in the UK are buying second homes around the country, indicating the extent of the problem facing those looking to get onto the first rung of the property ladder.

According to the lender, one in ten Britons now owns a second home, with 14 per cent of respondents saying they would give thought to buying a second property.

Recent suggestions that the buy-to-let sector was responsible for at least part of the problem have, however, been dismissed by a recent propertyfinder.com study, which noted that more than 16 per cent of respondents thought that high house prices were the fault of the investment sector.

But the website noted that low interest rates coupled with subdued inflation were the real driving forces behind rising house prices, despite just 6.3 per cent choosing these factors as the main catalyst.

And problems for first time buyers , many of whom are currently forced to rent instead, wouldn't be solved until the supply of land was increased, added propertyfinder.com chief executive Warren Bright.

"Restrictive planning policy enthusiastically enforced by local councils has severely constrained the ability of developers to provide the number of homes needed by Britain's rising number of households, and has exacerbated the rise in property values," Mr Bright commented.

But Nationwide's study noted that the number of Britons now buying second homes meant indicated that many were able to capitalise on price rises in order to raise money for investment elsewhere – a benefit clearly unavailable to first time buyers themselves.

First time buyers receive rates reprieve
http://www.firstrungnow.com/first-time-buyer-news/first-time-buyers-receive-3511.aspx"

First time buyers facing rising rents
http://www.firstrungnow.com/first-time-buyer-news/first-time-buyers-facing-3495.aspx

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