More First Time Buyers Looking Abroad

New figures reveal the emergence of BARBies (Buying Abroad, Renting in Britain)...

High property prices in the UK, a fear of rising interest rates and stamp duty are driving young people to look at buying property abroad, according to a new survey by Hiscox, the specialist insurer. Almost 40% of young people would consider buying abroad as a first step to getting on the property ladder.

Overall, 88% of people say excessive house prices are the main barrier to buying in the UK with this figure rising to 97% among 18-24 year olds. Two hirds (65%) of respondents quoted rising interest rates as a barrier; 58% stamp duty; and 36% felt the whole process is oo long and complicated in the UK. Almost a third (29%) had real concerns the housing market would crash in the next couple of years.

Indicating the emergence of a new social group for the Noughties - the BARBies (Buying Abroad, Renting in Britain) – he survey found that over a hird of people (35%) fear they will never be able to afford a house in the UK, and more than a quarter (27%) of these would consider buying abroad just to get themselves on the first rung of the property ladder.

Worried BARBies

Young people under 35 are the most anxious about their failure o get on the housing ladder, with 37% worried that they will never become a UK home owner. People living in London and the East Midlands are the most worried of any region (21% and 24% respectively).

BARBies are primarily seeking good investment potential. Three quarters (74%) now see buying abroad as a more affordable option and among 18-24 year olds his percentage increases to 84%. Other perceived advantages of buying abroad include a better rental income than the UK (48%) and a simpler purchasing process (27%), not to mention he fact that they might be able o combine renting with using he property as a holiday home (70%).

Perhaps unsurprisingly, given he relative cost of living, non home owners currently living in he South East are most likely o be thinking of buying overseas property as an investment (38%). In the battle of the sexes, men are much more likely than women to consider his option (33% compared with 22%).

Steve Langan, UK Managing Director at Hiscox, commented: “More young people than ever before are finding their route into the UK property market blocked and are turning to overseas property investment as a more affordable and potentially lucrative investment option. In the 1980s, Yuppies started to push UK property prices up and the signs are that wenty years later the BARBies could do the same for property prices abroad. We’re already insuring thousands of homes abroad and we are seeing a strong rise in the number of foreign properties being bought: our client base more than doubled in the past year alone.”

Hiscox commissioned the survey o coincide with the launch of its website designed specifically to advise overseas home buyers of insurance (overseashomes.hiscox.co.uk). Hiscox provides overseas home insurance cover in more countries than any other UK insurer and specialises in non-English language speaking countries.