France has surpassed Spain as the top destination for British property buyers seeking second homes, according to a survey published by HomeAway.co.uk and Savills International.
The perception of the country as stable, easy to access and having limited home price declines has boosted its position as a safe haven for UK property buyers.
The survey showed that traditional prime property destinations, which attract wealthy, lifestyle buyers, have been more resilient to the economic downturn. These include selected areas of southern France, Portugal’s Algarve region, Italy, the Alps and high-end locations on Spanish islands such as Mallorca.
It also showed that UK buyers are most influenced by factors such as proximity to bars, restaurants, beaches and airports. Most property buyers have bought homes in destinations with extensive tourism infrastructure, including beaches, cultural and historical attractions, children’s entertainment and golf courses.
In Italy, France and Switzerland, property buyers typically opt for older, traditional properties. Meanwhile, investors venturing into the US and Cyprus, as well as — to a lesser extent — Portugal and Spain, tend to acquire more modern property, reflecting the volume of new developments in these locations.
For those seeking to rent a holiday home, France, Spain, Italy, Portugal, the UK and the US topped the list, followed by areas in southeastern Europe, Greece, Cyprus, Turkey and Ireland. These countries are typical summer destinations, attracting 80 percent of holiday rental requests from April to September.
“Clearly, holiday home owners and tourists share similar preferences for overseas properties. Strong underlying ‘lifestyle demand’ for a property helps to support an investment case. It is these fundamentals that drive longer term capital appreciation and attract rental income,” said Rebecca Gill, Research Analyst at Savills International and the author of the report.
Tim Boughton, General Manager at HomeAway.co.uk, added that the “holiday rentals market is one of the fastest growing sectors in the travel industry, with around one in five people now opting for this type of accommodation over a hotel due to the value and experience it offers. This is good news for today’s lifestyle-motivated buyers as it generally means they can be assured of a strong rentals market which will help contribute towards costs.”
More than 50 percent of the respondents said that income generated from letting their properties partially covered costs. Interestingly, almost a third of respondents said rental income completely covered their costs, while 13 percent indicated that it made them a comfortable profit.
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