Second homes ''push prices up''


Thu 11th Oct, 17:38:09 BST

Owning a second home in the UK is an attractive idea for almost a quarter of Brits, a new poll has claimed.

Nationwide said that ten per cent of people already own a second home and 14 per cent of those the firm questioned saying they would consider buying one, with 55 per cent saying that getting a foothold in the buy-to-let market is the primary driver behind their interest.

Martin Gahbauer, a senior economist at Nationwide, 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.

Owning a second home is set to become cheaper after the Chancellor of the Exchequer, Alistair Darling, announced that he would be introducing a flat-rate capital gains tax at 18 per cent next April.

Liam Bailey, of estate agency chain Knight Frank, commented: "This will help to underpin demand for second homes and prices of second homes. However, the second home market prices are very expensive in most parts of the UK, and affordability is the key to demand."ADNFCR-1143-ID-18314476-ADNFCR


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