UK housing market forces buyers to property abroad

Posted on 28/11/2006 By Carol McDonald Categories: Real estate agent

With the cooling UK real estate market and a dramatic increase in housing prices, those looking to sell property in the UK are having a hard time deciding what to do next. Interestingly enough, housing prices have increased by 5.3% in November 2006, while the preceding months of September and October only yielded 4.3% and 4.9%, respectively. The current figure of over 5% has been shown to be the highest rate since August of 2004.

But what does this mean? Richard Donnel of Hometrack research seems to think that the supply of homes is the cause for the pricing increase. Because of the rapid interest in international property and buyers who want an investment property, there just aren’t as many homes available, making property in the UK something that’s hard to find and even harder to purchase.

Rising interest rates for property in the UK are also not helping keep local buyers in their own country’s borders. No longer are stereotypical overseas property owners a retired couple looking to spend their last years in the sun.

These days, it is the 18 to 29- year-olds who are looking further a field only a few years into their professional careers.

For young adults, the attraction in investing abroad is not the chance to escape the British weather, but to escape ever increasing British house prices.

According to research results released by MRI Overseas Property, a staggering 71 per cent of 18-29-year-olds would consider buying abroad and, in the UK, 33 per cent would look abroad for a first property

Bestinvest property advisers are showing that good locations for investment property are located in Germany, Australia, and even Japan for these weary buyers without a place to call home – proverbially speaking. Property funds are even investing up to thirty percent of their current housing opportunities in areas outside of the UK.

But the scope of investment property isn’t limited to the aforementioned areas. France and Spain are also considered hot locations for those looking for real estate, but don’t want to be limited by the interest rates or shortage of housing the UK. Simon Ward, of New Star, believes that Japan and Germany are actually the forerunners for those looking for investment property as they seem to be heading to the initial stages of financial recoveries.

Despite the complications of buying property abroad and the difficulty in predicting foreign economic conditions. The current state of property market in the UK appears to strengthen the trend toward overseas investment property.

Are you looking to buy property in UK ? Hurghada , Scotland , Istanbul , Sahl Hasheesh , Dubai

Are you looking to rent property in UK ? London , Manchester , Reading , Leeds , Cardiff