Half of Brits look abroad for property

Thursday, 27 March 2008 12:00 AM

Up to 44 per cent of Brits looking for property would consider moving abroad in order to secure their first step on the property ladder, finds FairInvestment.co.uk.

According to the price comparison website the number willing to look abroad, where property is cheaper and buyers could save for a deposit for a house back in the UK, has almost doubled in a year.

At this point in 2007, before the credit crunch struck and it was assumed growth would continue, National Savings and Investment found just 25 per cent of the British people would consider buying overseas.

This, however, has now dramatically increased.

"First-time buyers are being driven to sunnier climes for a route onto the property ladder as a result of the credit crisis which has been shaking the foundations of the UK property market," said James Caldwell, director at FairInvestment.

"Overseas they can sometimes find cheaper property prices and a lower cost of living, which could make buying their first home more affordable while they continue a high quality of life."

In addition to the numbers who would consider buying abroad, eight per cent have already done so according to FairInvestment, making a collective 52 per cent of first-time buyers who would relocate or already have.

This is compared to 47 per cent of first-time buyers who said they would not consider the move overseas and would still go for a first-time buyer mortgage in the UK.

"This growth in the number of people willing to move abroad is probably not a coincidence, as debt levels are rising and there has been a shortage of property in this country which has pushed prices up in recent years," explained Mr Caldwell.

The findings are supported by research from specialist property finance broker Assetz, which has seen a ten per cent increase in interest in overseas property to date in 2008.

"Since the start of the year, we have noticed a considerable increase in the number of enquiries from customers looking to buy a home in destinations such as France and Spain, either as a future retirement property, or indeed as their permanent residence," said Katy Hepworth, overseas mortgage manager at Assetz.

The nature of the market is also changing, according to the organisation.

"In fact, we have witnessed a dramatic shift in buyer profiles. Until the latter half of last year, the number of enquiries from investors, compared to those looking to buy a property where they planned to live at some point, were fairy evenly balanced.

"However, since the start of the year there has been a significant shift away from investors to those looking to buy a home in continental Europe, where they plan to live, by a ratio of about five to one."

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