News

Quality of life more important than profit:                                                      26/09/06

68% of Britons would like to buy property abroad, according to research from HIFX, the currency experts.

The study, carried out by YouGov, found that Britons rate overseas weather and lifestyles as more important than effective investment or making a profit when they pour their cash into properties abroad.

HIFX’s research found that almost two thirds of Brits (62%) see the main benefit of buying a property abroad as the chance to escape the cold and rainy UK weather. Half (50%) think it would be good to escape their stressful UK lifestyle of long working hours and high taxes and over a quarter (27%) would like to eventually emigrate and live abroad.

According to 2005 Office of National Statistics government figures the number of Britons owning second homes abroad now stands at 257,000. However, HIFX’s research shows that a further 29 million Brits would like to buy a property abroad and 11 million could actually own one within the next five years.

Surprisingly, desires to make a good investment or long term profit are low down on the list of priorities. People are three times more concerned about escaping the UK weather than making a long term profit. However, worryingly one in four property buyers are also either unaware or unconcerned about fluctuating exchange rates and how this could increase the final cost of their property.

Spain remains Britain’s top get away destination with 46% of prospective buyers aiming to buy there. However, far flung destinations such as Australia, Canada and New Zealand are also increasing in popularity. The most favoured type of property to buy would be a villa by the sea (49%), followed by a house in the countryside (19%); just 5% of buyers would consider an apartment in a city, including people wishing to emigrate suggesting that most Brits want their new home to be a complete escape from busy UK life.

Mark Bodega, Marketing Director of HIFX said: “There has been a shift from a second home being regarded as a luxury to it being something attainable by most people. In 1995, the average price paid for a second home overseas was 65% of the average UK property price. By 2005 it had fallen to 37% reflecting in part steeper house price inflation in the UK, but also the fact that second homes had become more of a mass market aspiration”.

“The impact of growing prosperity, cheaper flights and the low cost of borrowing – even lower than in the UK – mean the trend for buying property abroad is expected to accelerate”.