Almost one in five houses bought last year in Herefordshire were purchased as second homes or properties to rent out, figures show.

According to HMRC data, second home buyers, including property investors and landlords buying houses to rent out, were undeterred by new taxes on extra properties.

A second home is defined by HMRC as a property that is bought by buyers who already have primary residences. Last year, 18% of the properties sold in Herefordshire were classified as second homes.

This is despite an extra 3% 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.

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

One of the policy leaders, 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.”

In total, around £19 million was collected from stamp duty in Herefordshire in 2017.

In addition to this, HMRC figures say that duty on additional dwellings made up 36% of that amount.See this week’s paper for more stories like this, available in shops and as a Digital Edition now.