Insurance News Archive
'French market too expensive due to high UK prices'
A French holiday home may become a luxury that many can't afford, as Britons become increasingly burdened by mortgage debt in the UK, an expert has warned.
Matthew Weston, overseas mortgage manager for Blevins Franks, said the financial services group had seen around 15 per cent more inquiries about property in France since the subprime crisis in the US.
But the British market for French property is dominated by middle-aged professionals who are "both cash-rich and asset-rich" and can afford to invest in a holiday property or retire abroad, he continued.
According to Mr Weston, given that property investors often have no choice but to borrow large sums of money to get onto the property ladder in the UK, they will have little capital left to deposit and save.
"They're effectively biting off more than they can chew, and they'll end up paying off the mortgage for the rest of their lives. In the future, perhaps, a holiday home will be a luxury that many can't afford," he added.
Research conducted by Datamonitor at the beginning of December found that British and Irish citizens own 3.81 million properties overseas, with France, Spain and the USA being popular destinations.
The NatWest International Personal Banking League of Buying Abroad has predicted that traditional overseas markets such as France and Portugal will remain popular over the next three years.
21 Feb 2008
