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."
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