Investors are hoovering up all first-time buyers' houses, says agent

INVESTORS are making it more difficult for first-time housebuyers, according to one property professional.

'Cash investors are hoovering up the bottom end of the market,' said Alpha Estates director Dave Ingrouille (pictured).

'Somewhere in the region of 60-70% of first-time buyer level properties are being taken by investors. It is almost a defensive investment strategy for a lot of people.'

He said that might be a result of the States' decision to do away with dwellings profits tax.

'Before, they had to hold on to it for years but now then can sell on after a day.'

The tax was introduced in the 1970s to combat property speculation but was suspended after a vote in the States in January.

The Treasury and Resources Department said that it was not effective either in terms of the cost of administering it or in achieving its objective.