British first time buyers are increasingly looking at the foreign property market to get their first step on the housing ladder, thisismoney.co.uk reports.
Britain’s property market has been well publicised in recent years, going from steep increases in value during the housing boom to a short contraction that left mortgages out of reach for millions of people who couldn’t raise the tens of thousands needed to cover large deposits.
Now, Brits appear to be targeting the overseas property market to break into ownership, as many have much more affordable options on offer.
The results came from a survey by foreign exchange specialist Moneycorp, which found that the number of 19 to 28-year-olds using its service when looking to move abroad had increased four-fold over the course of 2012. When looking at those in their 30s, meanwhile, the figure rose by 25 per cent.
Of the countries proving popular with Brits moving abroad, America came out on top, with the English language and large properties available – for relatively low cost – proving a popular draw for many. Closely following the US were Spain, Australia, France and New Zealand.
Commenting on the findings, personal client dealing manager at Moneycorp, David Kerns, told telegraph.co.uk: “Younger buyers are not letting the domestic housing market price them out of purchasing property altogether.
“More and more young buyers are going abroad to get themselves on the housing ladder. With the UK’s shortage of affordable properties, large deposits required and challenging mortgage applications, for the first time it makes sense for younger buyers to simply look overseas for affordable alternatives.”
