ONE in five homes bought in Dorset last year were second homes.

The trend was most striking in Bournemouth where nearly a third of properties purchased were second homes or investments, according to data from HMRC.

Around 1,240 homes, or 29 per cent of the total, were bought in the financial year 2017-18, with a combined value of £299 million.

This was despite an extra three per cent stamp duty charge on additional properties introduced in April 2016 as part of a government effort to deter buy-to-let landlords, property investors and second home owners.

Poole saw 770 properties, or 22 per cent, snapped up by current homeowners, with a combined value of £310m.

In the Dorset county area some 1,990 second homes were bought, 21 per cent of the total, costing some £609m.

The National Housing Federation, which represents housing associations, said it was concerned about the impact on local communities.

Policy leader Will Jeffwitz said: "In any community, if more homes are bought up as second homes then there are fewer available for residents, and the houses left are more unaffordable.

"If families and young people are priced out of their local communities it can have a hugely demanding impact on community life, with village shops, schools and pubs closing in alarming numbers as a result.

"Our solution is that there should be a renewed focus on building more affordable housing, which reduces the impact of a high ownership of second homes."

The number of second homes bought last year across Dorset increased by around 20 per cent on 2016-17.

HMRC collected around £26m in stamp duty in Bournemouth last year, £39m from Poole and £79m from Dorset county, of which between 38-50 per cent came from the duty imposed on additional homes.

Across England almost one in four properties bought last year were classified as second homes.

Around 232,000 second homes were bought, with an estimated value of more than £70 billion.

Lawrence Bowles, research analyst at estate agent Savills, said first-time buyers were still at a "fundamental disadvantage", despite the new tax.

"First time buyers will typically be buying with a mortgage, and buy-to-let landlords will often have the money in their account ready to go," he said.

"Sellers prefer that over mortgages because of the certainty – there's always a risk associated with a mortgage."

A Treasury spokesman said: "We want to support the dream of home ownership for the next generation.

"Higher rates of stamp duty on second homes means we can afford to offer more support to first time buyers through the stamp duty relief."