house prices in Bolton are being pushed up by buy-to-let investors, frustrating hundreds of first-time buyers.

The recent buy-to-let trend shows little sign of a slow-down, meaning young buyers are being squeezed out of the housing market.

A report by UCB Home Loans, a specialist arm of mortgage giants Nationwide, shows the trend is spreading faster in the North-west than other regions.

And as the gulf between house prices and wages widens, people at the bottom of the pay scale are being forced to turn to renting rather than buying property.

The growing number of students and the easily commutable distance to Manchester are also factors said to be behind the trend.

Bolton estate agents confirm that the current market is proving to be a vicious circle for prospective homeowners.

Paul Herod, of Aston Estates, based on Chorley Old Road, said: "It's certainly making for a lot of competition.

"We're seeing the most pressure on small houses, particularly terraces, because of buy-to-let.

"By their nature, the new investors are in a better position because they are able to unlock the equity in their homes straight away.

"It creates a vicious circle because people are being forced to rent while they are saving for a deposit and they're fuelling the market.

"The only thing first-time buyers have on their side is low interest rates, but even then they need a deposit."

UCB Home Loans director Chris Reed said the market was being fuelled by low rates encouraging existing homeowners to remortgage their property and investing to make money.

"The market has seen a big increase in the number of re-mortgage applications received, as people's initial benefit periods for fixed or capped rates come to completion," he said.

"Investors are also taking advantage of increases in property prices by re-mortgaging and ploughing the money into new purchases."