First-time buyers frustrated with soaring prices in the UK housing market are turning to overseas property, according to Datamonitor.
A Datamonitor report has revealed that some FTBs are buying property in Spain, France, the Caribbean and Eastern Europe in the belief that returns on their investment will help towards a deposit for a UK property.
A series of interviews with overseas mortgage advisers showed an emerging trend in FTBs speculating overseas.
The proportion of FTBs in the UK has fallen from 47 per cent of all house purchases in 1999 to 29 per cent in 2003.
Datamonitor financial analyst Karina Purang says: “First-time buyers are attracted by the possibility of realising profits by buying at relatively low prices in less popular regions and selling when property prices start rising due to an increase in demand. Such speculations, if successful, can lead to significant profits, which can then be used towards the deposit for buying a property in the UK.”