Increase in number of second properties

Posted: 08 Aug 2006 11:25:33 GMT

The number of people in the UK taking on a second property has increased by around 300,000 since 2001, figures show.

Research from Direct Line shows that parents buying houses for their children is a major contributor to this increase. As students embark upon university more parents than ever are choosing to set their children up in their own homes to lower the burden of financial pressure.

Thus more property owners are investing in another home knowing that in the current market it probably makes a sound investment.

Andrew Lowe, head of home insurance at Direct Line stated: "The continued boom in house prices, the rise in parents buying properties for their children and the growth in tele-working are among the key drivers of the UK's buoyant second properties market."

Other major factors for taking on a second property included holiday homes, work bases, and investing with a view to letting the property.

There are now around 2.6 million second properties around the UK; with 83,000 being bought by parents for students in 2005.

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