Ex-service houses are being sold below market value

Ex-service homes in the village of Llanfihangel yn Nhowyn near the RAF Valley base, will be sold at a "first come, first served" basis on Friday.

With prices starting from �51,950 for a two bedroomed house at the Trem Cynhyran and Ffordd Cerrig Mawr estates in the village, more campers are expected to turn up before the morning of the sale.

Locals are keen to buy one of the 20 properties for an affordable price in an ever-increasing market.

Jake Dee, who already lives in the village, has been camping on site with his girlfriend since Monday.

Buyers have started camping in the estate

"I am a first time buyer and houses are in short supply here.

"If you bought privately you would pay at least �60,000," he said.

Barbara Wilson, who rents a house in the village has inquired about a house on the site because she believes a mortgage would be less costly than her weekly rent.

"There is a house around the corner, which has the same number of bedrooms, going for between �70,000 and �80,000 so these offer really good value.

"I haven't looked elsewhere in the area for a house before because they are too expensive," she said.

The average house price in Wales went up nearly 24% to �90,585 at the beginning of 2003.

A semi-detached house on Anglesey is now on average �71,260 - 31% higher than the previous year.

Barbara Wilson is hoping to buy one of the houses

"These houses would appear to represent good value for money at about 10 or 13 per cent lower than the market value," said Llangefni estate agent, Melfyn Williams of Williams & Goodwin.

"It is an excellent opportunity for young people to get their foot on the property ladder."

The houses are the property of Annington Homes - the largest private owners of residential property in the UK.

They bought more than 57,000 homes from the Ministry of Defence in 1996.

They have already sold off one lot of houses in the village and the "first come first serve" procedure is their standard practice across the UK.

"Demeaning"

However, some of those queuing are not so happy with the arrangements.

One said: "It's a terrible way to sell houses.

A camping area has been designated for prospective buyers

"I'm queuing for my son, but if you have a job, there's no way you can get time to register for a house.

"They should be made available to first time buyers."

A spokesperson for Welsh pressure group Cymuned called the method of selling "demeaning" and said the houses should go to those with the most need or to local people.

A spokesperson for Annington said: "We sell houses for fixed prices as they are seen.

"It is fairer than the open market, where you would have quite a few people interested, which would then push up the price.

"We don't ask people to camp out and don't expect them to do so either.