Holiday home seekers are increasingly eyeing overseas vacation boltholes, as the continuing strength of the pound makes many foreign holiday homes look like bargains.
According to TheMovieChannel.com, there has been a surge in interest for overseas mortgages: “Foreign mortgage specialist Conti has seen enquiries soar 90 per cent in the first quarter of 2014 year-on-year,” reports the site.
Along with the strong pound, an improving economic outlook is also fuelling interest in buying overseas.
But while the pound is gaining against the US, Canadian and Australian dollars, it has not moved much against the euro – the currency used in the Eurozone, where Britons often buy their second homes.
As such, countries like Turkey have garnered much interest – already very popular with UK holidaymakers.
However, as many of our holiday home insurance customers will be aware, there may still be bargains closer to home. Properties in France have fallen by up to 20 per cent in some areas, with the biggest drops being seen in the countryside. Coastal areas have seen less dramatic drops of 5 to 10 per cent, according to one French estate agency quoted in the Telegraph.
But concerns over French property taxes and the market in general mean buyers could see the value of their property continue to drop. Some experts, however, suggest prices could be about to bottom out soon.
Another reason suggested for the drop in French holiday home prices is that French people themselves are holidaying differently. Shorter breaks spread over the year are favourable to longer breaks spent in the same place, according to Jean Dugor, a notary in Brittany, speaking to the Telegraph. Additionally, the high divorce rate in France has, say some experts, put couples off from making such a big financial commitment.