There are many first-time buyers who strive very hard to climb up the housing ladder. Meanwhile, the number of families who have more than one properties are also increasing faster.

In England, more than 250, 000 households have second homes. However, the prices for second homes are usually higher.

According to Yolanda Barnes, director of Savills Research, a typical owner of a second home usually sees the property as an investment or a holiday home. However, people who spend all their money just to buy their second home are warned. There is a higher risk of getting overwhelming tax bills when they sell up.

When you buy a second home, you will need to assign which home will be the principal home for two years. The timing should be right since once you have elected the principal home, the other one will automatically be liable for tax.

By M. Sese