Buy-to-let 'adds to house prices'

A new report has stated that the emergence of buy-to-let has led to an increase in the price of owner-occupied homes.

The study, by the National Housing and Planning Advice unit, has concluded that since buy-to-let mortgages became available in 1996, the average house price has been raised by an extra seven per cent as a direct consequence of buy-to-let.

Factors such as a diminishing effect on the number of homes available for first-time buyers have seen the average house ending up £14,000 more expensive than it would otherwise be.

The unit's head, Steven Nickell, has admitted that these figures do not even include buy-to-let hotspots such as city centres and university towns, which may mean the figures underestimate the impact of this phenomenon on prices, the Guardian reports.

An increase in prices caused by buy-to-let may prompt more people to consider the self build option.

The buy-to-let industry has just formed its own trade body, known as Probas.


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