Pembrokeshire rated fourth best National Park area to invest in buy-to-lets

Norton Finance recently released data supporting investment in buy-to-let property, encouraging second home buyers amid what has been called a 'housing crisis' in Wales.

Plaid Cymru Senedd Member, Mabon ap Gwynfor, went as far as to say communities will be 'engulfed' by second homes, with the fear of holiday resorts and ghost towns unless the Welsh Government takes action.

Steps to avoid this could include increasing land transaction tax, changing planning laws and imposing a cap on second homes.

One thing that property agents in Pembrokeshire agree is that the market is currently booming.

A popular agency in the county town says demand far out strips supply at the moment

"The issue is the lack of housing," said a spokesperson for the firm, which wishes to remain unnamed.

"There is no social housing out there and the rental market is now just so competitive. People are taking properties on virtual viewings without actually seeing the property in person."

Michael Woods, director of RK Lucas, has a different take on the current situation, saying part of the issue is that the market is simply red hot at the moment.

"The housing market is like any other market. It rises and falls. At the moment it is extremely buoyant but it won't continue at this level of activity."

Mr Woods described how there are opportunities for all in a market he feels is big enough to accommodate everyone.

"We recently had a three bed terraced property, the viewings and interest was through the roof and I can confidently say that 90 per cent of viewings were local people."

Top National Parks to invest in buy-to-lets. Table by landlordtoday.co.uk

Norton's research estimates the Pembrokeshire Coast offers the highest yield on rental property, at 35.36 per cent, with the study putting average property prices in the area at £217,923.

All well and good for those who can afford it, but what about the locals? The letting agents we spoke to painted a bleak picture for those from Pembrokeshire.

"The young people down here, because their salaries are not as good as say England, people can come down here and think they are getting a good deal for rental because they are paying significantly less than the home counties, but it means the local kids who do not earn these salaries can't even rent let alone buy."

Mr Woods sees the market is punishing a different demographic of client - the high-end spender. He explains that the real increase in property has come in the bigger homes.

"The largest price increase has been in the four, five bed detached homes which were £350,000 three years ago and are now £500,000 to £600,000, but the three bed semis and the first time homes and second homes that were £110,000 to £130,000 a few years ago, they are now going up to £130,000 to £160,000, so they have not increased at the same rate as the big ones have.

"The hardest ones hit are those looking to upgrade. Those are the ones having to pay more now."