Buy-to-let market 'making huge impact on first-time buyers'

The buy-to-let market is making a bigger impact on first-time buyers options than has been reported, according to Firstrung.

Recent figures from the National Housing and Planning Advice Unit (NHPAU) have revealed that the buy-to-let market has added seven per cent onto house prices but Firstrung has described this figure as "huge".

Paul Holmes, chief executive officer of Firstrung, said: "Our average first-time buyer puts in about a seven and a half per cent deposit. So even if we are to take the Planning Unit''s figures at face value, buy to let has meant that my first-time buyers are having to pay an extra £15,000 per property."

He added that although the NPHPAU says that this is a small amount, "£15,000 for a first-time buyer is huge".

Earlier this week a spokesman for the Association of Residential Letting Agents said it was "a load of rubbish" that the buy-to-let markets make it harder for first-time buyers to get onto the property ladder.

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