Second home owners hampering first-timers

The growing numbers of Britons purchasing second homes are making life harder for first-time buyers, according to Nationwide.

A survey by the bank suggests as many as one in ten people own a second property in the UK and a further 14 per cent would consider buying one.

The company's chief economist, Martin Gahbauer, said: "Purchasers of second homes - be they for personal use or to let out - are an important source of housing demand and have probably helped push up prices in many areas of the country.

"However, current market conditions may have an impact on this part of the housing market.

"While second home buyers will often be able to draw on large house price gains from the past decade, this advantage is not available to local first-time buyers, who face challenges in their attempts to get on the housing ladder."

Nationwide also suggested that if all those considering the move bought an additional home, as many as one in four Britons would own two properties.

The most popular reason for buying a second home was as a buy-to-let investment, cited by 55 per cent of people, while a third bought a second place for personal use and 7 per cent let out their second property as a holiday home.

Just under a third of buyers looked at proximity to shops and entertainment as important factors when buying their homes, or opted for properties close to relatives or in on the coast.

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