One in four houses bought last year in Weymouth and Portland and West Dorset were purchased as second homes or properties to rent out, figures show.

According to data from HM Revenue & Customs, 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 26 per cent of the properties sold in Weymouth and Portland were classified as second homes.

Around 380 were bought in the financial year 2017-18, with a combined value of £95 million.

Last year 24 per cent of the properties sold in West Dorset were classified as second homes.

Around 540 were bought in the financial year 2017-18, with a combined value of £171 million.

That's despite an extra 3 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.

In 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.

The number bought last year in Weymouth and Portland has increased by 27 per cent since 2016-17, when around 300 second homes were purchased.

And the number bought last year in West Dorset has increased by 13 per cent since 2016-17, when around 480 second homes were purchased.

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

He added: "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."

The NHF praised the Government for reducing stamp duty for first time buyers, but urged that more investment was needed in social housing.

Mr Jeffwitz said: "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."

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

He said: "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.

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

In total, around £7 million was collected from stamp duty in Weymouth and Portland last year.

HMRC figures say that duty on additional dwellings made up 51% of that amount.

And around £20 million was collected from stamp duty in West Dorset last year and duty on additional dwellings made up 42% of that amount.

The Treasury said that the Government's priority is to "support first time buyers".

A Treasury spokesperson 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."

'Shortage of rented properties'

Cllr Gill Taylor, housing briefholder for Weymouth and Portland Borough Council, said: "People buy second homes for all sorts of reasons, not just as holiday homes. Some of these will be landlords purchasing property as part of their businesses. In Weymouth & Portland there is a shortage of private rented properties, so an increase in buy-to-let homes is something I would encourage to help meet demand. Also the figures may not take into account households who have moved to the area but are still waiting for a sale to complete on their old home.

"The council is encouraging the development of housing in the borough via Opening Doors, a Dorset Councils partnership programme to accelerate home building. This programme has been running for two years now and is starting to make a difference. We have also recently gone into partnership with Magna Housing to develop the North Quay site which will be a mixture of social and private housing, some of which will be for shared ownership houses for local people."