Holidays abroad fuels property boom by 20%

News - Living

Friday, 09 October 2009 14:36

The holiday season may be over, but it appears that trips abroad this summer have inspired many to buy their own place in the sun.

Conti has just had its busiest month since the beginning of the year, with a 20% surge in mortgage quotes issued during September. The value of mortgage applications submitted by the company to overseas lenders also rose to a year high.

As property prices fall across Europe, the chance of owning a holiday home abroad may never be better, and with rates at an historic low, it’s even more affordable for British buyers.

Clare Nessling, Conti’s Operations Director, says: “The ‘staycation’ trend may have reduced the number of Britons holidaying abroad this summer, but many of those who did venture overseas have returned home with plans to buy their very own place in the sun.

“As the darker nights return and the all-too-short British summer comes to an end, it’s very easy to dream about sunnier climes. But it can be more than just a dream. Affordable prices, low interest rates, and a healthy appetite by overseas mortgage providers to lend, are all making it easier to buy property abroad. Easy access to the more traditional locations like France and Spain, together with good rental opportunities, are also contributing factors.”

According to Conti’s recent hot spots report, 31 per cent of the mortgage enquiries it has received so far this year have been about France, followed by Spain with 22 per cent, and Turkey with 13 per cent. It seems that buyers are sticking to the locations they know and trust and shunning the more adventurous emerging markets like Bulgaria and Dubai.

Conti says that there’s a growing feeling of confidence amongst prospective buyers, and that savvy investors are more willing to explore overseas opportunities in their search for better potential returns on investment than they’re achieving in the UK.