Holiday home budgets reduced by £50,000

Tuesday, 14, Apr 2009 11:49

Brits looking to buy a home abroad have reduced their purchasing budgets by £50,000, according to research from PropertyIndex.com released today.

The average price for a property enquired about on the UK's leading property portal now stands at £199,284, compared with £253,435 in March 2008.

PropertyIndex.com have also found buyer interest in overseas property has increased, and despite the falling budgets of overseas purchasers, the type of property sought is still similar to a year ago; predominantly one and two-bedroom apartments in coastal locations, within a two-hour journey of an airport, proving most popular.

Lee Bramzell, chief executive of PropertyIndex.com, said: "I am not surprised that the aspiration for Brits to own property overseas is still strong, although they have less money to spend and are seeking the best possible value for money. During the boom years, owning a home abroad became a mass market and that dream is not going to disappear overnight.

"However, buyers are aware that property prices have fallen across the globe over the last twelve months, and they are determined to take advantage of this by securing the same type of property for considerably less than they would have paid a year ago."

PropertyIndex.com say they believe buyers are watching the market carefully and waiting for the right moment to buy, and there are signs this time is approaching as the pound strengthens against the Euro and price falls slow.

Mr Bramzell added: "Despite their limited budgets, buyers are still whiling away the hours poring over property they can't afford, with the average price of property viewed on the site at £267,618 - nearly £70,000 more than they are looking to spend."