The number of UK-owned properties abroad grew by as much as by 35,000 last year to an estimated total of 425,000, a property portfolio worth £58bn. And these owners are not too concerned about the impact of climate change on travel abroad, says a new report out from Savills, saying they’re just as happy to travel if the price of travel is to rise.
A key driver of demand for buying property abroad is still price: with an average budget of £225,000 to spend, buyers find they can get more for their money overseas. Leisure is the main motivation driving second home purchases with investors making up the rest of the sample, including 17% specifically buying for fly-to-let. ‘The ideal holiday location was rated as the most important factor amongst purchasers, which goes some way to explaining the ongoing purchase of property in locations where capital growth slowed or even turned negative last year,’ says the report.
It also notes that growing numbers of buyers are capitalising on the popularity of city break tourism by making purchases in New York, London, Barcelona and Paris. Other city break rental destinations increasingly include Eastern Europe with Prague, Krakow and Budapest becoming popular places for Brits to buy.