UK, Brits, investment

Over three million Brits are likely to buy a property overseas within the next two years as economic conditions in the UK make strong returns less likely, according to new research from Cater Allen Private Bank, part of Banco Santander.

Its survey of UK clients found that some 2.3 million people already own a property abroad, with around 500,000, or less than 25%, having bought for investment purposes.

However, the bank believes that in light of current domestic market conditions in the UK this number will rise and nearly double (42%) the amount of future buyers will look to purchase for investment reasons.

According to the research, 17% of people aged over 45 are likely to buy abroad by 2010, making them the age group most likely to do so, while one in ten of those aged between 18 and 34 (10%) are also looking to buy overseas - the majority of them, (60%) looking purely as an investment.

Regionally, Londoners are most likely to own a property abroad, with one in ten (10%) doing so, however London’s property-owners are also the least likely to visit their property each year. On average, Britons who own a home abroad will visit the property between two and three annually.

ally Watts, marketing manager at Cater Allen, said: “With concerns that a deteriorating property market will not guarantee the returns that people expect from buying a property, more and more people are investigating how they can find investment returns elsewhere.”

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