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LONDON - Attracted by the prospect of their own place in the sun and an easy way of making money, the numbers of British people owning a second home abroad is booming as never before.
Around 800,000 British households now have a second home abroad, a figure which
has risen by 45 per cent since June 2004, according to new research published this week.
The boom has been fuelled by a series of television programmes about people buying abroad - either for holiday or moving permanently - and helped by the rise in property values in Britain, low interest rates and the expansion of no-frills cheap flights to once-obscure parts of Europe.
The trend is expected to continue, according to Mintel's Market for Homes and Properties Abroad, which says that another 3 per cent of British households are intending to buy a second property abroad some time in the future while a further 5 per cent are planning to sell up altogether and move overseas.
A better climate remains the main reason why Britons yearn for a property abroad, with more than half of nearly 2000 people questioned putting it as their principal reason.
However, an increasing number of people are seeking to invest money in new-build developments, with 40 per cent of respondents saying that making money was their prime motivation for buying abroad, while 38 per cent wanted a future retirement property and somewhere to take their families.
Paul Davies, a senior financial analyst with Mintel said: "The property boom has increased levels of housing equity while the low interest rate environment has allowed other prospective property purchasers to take advantage of relatively cheap borrowing. Interest in overseas property has also been stimulated by the amount of coverage the issue has received across the media, together with the boom in low cost airlines."
Overall, Spain remains the most popular destination for living abroad, with 43 per cent naming it their preferred location; the next most popular is France, followed by Australia and Italy.
Despite increased interest in Eastern European countries like Bulgaria and Hungary, they still remain a target for a minority, with only 7 per cent choosing such destinations.
However, companies such as Bulgarian Dreams, based in London, which specialises in new developments, stressed that business was booming.
David Smith, the general manager, said: "We have gone from nothing to employing 25 people in just four years; business is increasing by 50-60 per cent a year."
Britons' preferred destinations:
1. Spain
2. France
3. Australia
4. Italy
5. US
6. Portugal
7. New Zealand
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