First-time buyers 'would move abroad to maximise savings'

A quarter of young Britons say that they would consider moving abroad to help them buy their first home in the UK, according to a new survey.



Property prices remain out of reach of first-time buyers in many parts of the UK and are still rising, with a recent report from the Financial Times showing prices rose 0.9 per cent on average in February.

Consequently, some Britons would consider living abroad where costs are lower in order to build up their savings nest egg, with Spain the most popular destination for this purpose, followed by Australia or New Zealand, the USA, then eastern Europe.

Meanwhile, 24 per cent of respondents say that they would think about moving to a cheaper part of the UK in order to build their savings up for a deposit, the survey from National Savings & Investment (NS&I) found.

Dax Harkins, senior savings strategist at NS& I, said: "British people clearly have a great appetite for buying a property in this country but find it difficult to save for a deposit while living here.

"It seems many will go to extreme lengths to achieve their goal, even if it means moving to the other side of the world in order to save up for a deposit back home."

The research also found that the 43 per cent of the population that save regularly have saved an average of £184.32 each month during the winter, up from £169.13 a year earlier.

Rate Increased in Spain

It has been claimed that Spain’s property market has slowed because of rate rises.

Spain is still the number one choice of British buyers wanting a property abroad. European and the UK’s rate rises have meant that people have less money to spend and those finding finances getting tight are selling their Spanish properties to reduce their outgoings.

The second home market is more susceptible to rate changes as when things get financially difficult second homes are an asset that has to be sold.

Although coastal properties remain very popular areas such as those already highly populated with holiday home buyers are slowing as are those in the more expensive areas.

Prices are still rising in Spain but not at the rate they have seen in the past few years.

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