• Up to 400,000 overseas properties are currently owned by the British. This figure has increased by 9% per annum over the past 10 years.
• Owners of overseas second homes are typically aged between 45 and 75.
• One in four overseas second home owners have more than one property abroad.

The research

Savills research shows that investment motives drive the majority of overseas second home purchases and that rental potential is the single biggest consideration.

Price premiums for properties in locations served by low cost airlines can be as much as 37%

Typically the highest rents are being achieved in established holiday destinations such as France, Italy & Greece.

The Office of National Statistics estimates the total value of UK owned foreign property has increased more than threefold between 1994 & 2003 from £7 billion to £23 billion.

Growth is driven by the attractiveness of overseas prices, excellent access from low cost airlines, the ability to finance purchases from high UK equity and increased economic & political stability throughout Europe and the world.

In 2002 14% of acquisitions cost over £250,000 this rose to 21% in 2006. At the other end of the market 8% of purchases were below £50,000 in 2002 and by 2006 that figure had reduced to 2% reflecting a widespread increase in prices.

Second homes in Spain, Greece & Portugal have experienced the lowest capital growth but still at rates in excess of 10% per annum.