Britons Spend 23bn on a Place in the Sun

A huge demand for homes in the sun has seen Britons' spending on properties overseas increase by 45 per cent in four years.

The number of Britons owning second homes abroad now exceeds a quarter of a million people, at 257,000.

An official report today says British families have invested more than 23 GBP billion in overseas property, with most of that invested in Spain and France although increasing numbers are turning to Canada, the Caribbean and New Zealand.

But people buying villas and apartments have been blamed for soaring house prices in areas of France, Spain and Italy.

Figures released by the Office for National Statistics show that more than a million families in England own a second home, the vast majority of which (72 per cent) are in England, with five per cent in Wales and Scotland, and the remainder overseas.

"In recent years the increasing affordability and accessibility of foreign property markets has contributed to a rise in the number of UK households that own second homes abroad," the report, Social Trends, says.

"Between 1999-2000 and 2003-4 the number increased by 45 per cent."

Spain accounted for 27 per cent of all second homes abroad, followed by France at 20 per cent.

But in 2003-4 over a third of all homes owned abroad were outside Europe with almost 154,000 in the United States.

Property ownership was also increasingly common in countries such as Australia, Canada, the Caribbean, India, New Zealand, Pakistan, South Africa and Sri Lanka.

Alex Wright, director of currency specialist HIFX, which assists Britons buying property abroad, said there was strong demand in more adventurous locations.

"Spain and France are still the most popular destinations, but we have seen increased interest for investment property in Bulgaria and Dubai. Even Canada and Switzerland have seen their fortunes rise and new locations pop up all the time, including Egypt, Brazil and central Europe - Poland, Hungary and the Czech Republic."

The Association of British Travel Agents estimates that home ownership abroad will double over the next five to seven years.

The Spanish Ministry of Tourism predicts that more than one million foreigners will set up home on the Spanish coast in the next six years, a figure expected to treble by 2025.

Sarah Vaughan, a property specialist and director of a public relations firm based in Spain, said estate agents still received inquiries from British people who thought £100,000 would buy them a four-bedroom property on the Costa del Sol.

"Realistically the minimum you can spend is 145,000 GBP for a two bed apartment, or 210,000 GBP if it is in Marbella.

"The Costa del Sol is going through a bit of a wobble and is not the place to buy if you are looking for a good investment.

"You can still buy places for a song in northern Spain, and inland, but northern Spain tends to be rainy, and without the bars and restaurants, and if you are inland you might not be near the airport, or have a phone connection, or the property might need a lot of work."

Recent research suggested some young Britons were looking abroad to take their first step on the property ladder because house prices were too high in Britain.

A poll of more than 4,600 adults, conducted by YouGov, found that nearly half of the 18- to 29-year-olds questioned planned to buy abroad, with two thirds of those stating that their foreign investment would be their first property purchase.

More than 80 per cent of those first time buyers said they would rent out their property.

The new breed of first time buyers, dubbed the "jet to let generation", said they would spend an average of 101,000 GBP to buy abroad, nearly 80,000 GBP less than the average house price in Britain.

Simon Burgess, a director at Oceanico Developments, a property development company, said: "More than two in five want to live in foreign climes because it's more affordable than the UK.

Story from the telegraph

found by HOMES & FINCAS, Ayamonte, Costa de la Luz, Spain

Record Numbers of Britons Leave for Better Lives Abroad

Record numbers of people are leaving Britain to live and work abroad, figures show. More than 350,000 men and women are emigrating every year, a rise of 30 per cent in 10 years, The Independent reports.Experts are particularly concerned that the number of people in professional occupations leaving Britain has doubled since 1994.Figures from the Office for National Statistics show that 359,500 people migrated from Britain to other countries in 2004, up from 236,500 in 1994.While the outflow of people was offset by 582,000 foreigners coming to live in the UK for at least a year, there are concerns that Britain is proving less attractive to migrants, whom it desperately needs to plug staffing shortages.Of the people leaving the UK, 207,600 were British citizens, the highest since current records began in 1991. The number of people in the professional classes emigrating almost doubled from 69,000 to 122,000 in the same period.More detailed figures for 2003 show that the number of people going to live in Australia, for the first time, went over the 20,000 mark.
Nursing organisations have been warning that Britain's policy of recruiting nurses from abroad is backfiring as many of the foreign recruits are simply using the UK as a stepping stone before going to the United States, where salaries are much higher.Figures from the Nursing and Midwifery Council show that, last year, 4,393 nurses left Britain for jobs in Australia and New Zealand, double the number who went in 1995.
Howard Caton, of the Royal College of Nursing, said: "It seems that nurses may be attracted to Australia and New Zealand early in their careers. But we are also seeing large numbers of nurses going to America. The opportunities for career advancement can be very good there."We have heard of foreign nurses being recruited by agencies to come and work in Britain, and then, six months later, they are approached by the agency to go and work in the US."Poor workforce planning has also meant that hundreds of newly qualified junior doctors have found that there are no jobs for them in Britain, despite the fact that the NHS needs more staff.
Andrew Roland, deputy chair of the British Medical Association's junior doctors committee said: "These are people who have trained for years to work in the NHS and have then found that there is no job for them."Doctors are not going abroad for an easier life, but to start their careers. The problem is about whether they come back or not."A report by the World Bank last year found that one in six graduates leaves the UK, more than any other Western country. Professor Andrew Oswald, professor of economics at Warwick University, said: "We have a severe problem in holding on to our best graduates. A junior academic economist in Britain will earn about 25,000 GBP's a year; in America, they start on about 50,000 GBP's to 60,000 GBP's."Observers said that the growth in ownership of second homes may also be both a cause and effect of the migration out of Britain.Enquiries to the currency specialist HIFX about buying a property in Australia have tripled since the beginning of this year.
Mark Bodega, marketing director of HIFX, said: "The traditional markets for buying a second home are France and Spain, but we are increasingly seeing people buy in places such as Australia and Dubai."

found by HOMES & FINCAS, AYAMONTE, COSTA DE LA LUZ, SPAIN

Property Channel
House prices in Spain rose by 12.8 per cent in 2005
© Andreas Bauer

Spanish property bubble showing no signs of bursting16 Feb 2006Nick GibbensThe Spanish property market still offers solid investment opportunities despite negative publicity that the bubble is about to burst, property experts have said.With an expanding economy, high employment and excellent infrastructure the Spanish market is still very strong, according to exhibitors at The Homebuyer Show.They say that although the newly emerging hotspots, such as Eastern Europe, promise excellent returns on investment, for reliability and stability of investment income, homebuyers shouldn't dismiss the traditional Costas altogether.
Jason Windle, managing director of a well known estate agency who will be exhibiting at the show, comments: "Even though there is talk that the Spanish property market has reached its peak, it is still catching up with the English market. I strongly believe that it has a long way to go and we may still be only mid-way through the property boom."With excellent health services and an unrivalled quality of life, Spain offers a much more enjoyable investment opportunity than reading share prices every day!"What's more, as there are few barriers to living and working in Spain it has become a favourite destination for people looking to migrate or retire overseas, which acts as a great support to prices. For an average two bedroom, two bathroom property on the coast, you can expect around €700 per week in rental income during the summer, and €500 per week during the golf season."
Nick Clark, managing director of The Homebuyer Show: "With low cost airlines leaving for Spain throughout the day, good infrastructure and an established year round rental market, it really is an excellent investment opportunity.""Terry O'Connor, business development director of another exhibitor, said: "Despite its longevity, Spain really is still a good option. Mortgages are easily obtained, there's no worry with currency instability and there are some great deals at the moment.
Some areas in the Costa de la Luz have seen inflation of 40 per cent in the last two years, and we expect at least 15 per cent in 2006."For capital growth potential, I would suggest buying off-plan at an established development such as Costa Esuri or Nuevo Portil. Townhomes with three double bedrooms are available for around €260,000 (£177,000), whereas luxury two bedroom apartments can be had from €160,464 (£110,000). Buyers in one of our developments have seen their value rise by 30 per cent in the past 18 months and we expect good capital growth to continue in these up and coming areas."
Nick Clark, managing director of The Homebuyer Show, added: "Despite emerging property markets creating a real buzz at the moment, traditional markets like Spain are still incredibly popular with visitors to our shows."With low cost airlines leaving for Spain throughout the day, good infrastructure and an established year round rental market, it really is an excellent investment opportunity."However, we would encourage any potential or professional investors to research the market and get advice from a professional before they commit."

found by HOMES & FINCAS, AYAMONTE, COSTA DE LA LUZ