But many property owners are missing out as they don't bother to rent out their properties even though they are more popular than hotels with holidaymakers.
Recent figures from the Office of National Statistics show, for example, that 850,000 Brits now own a property overseas but around 80% of these do not currently rent out their properties. Its figures also show that UK expenditure abroad increased by 10% to £9.6 billion in the first quarter of this year, with many people opting to stay in privately rented accommodation rather than hotels.
According to a survey by Savills Research and Holiday-Rentals.co.uk in 2007, the average purchase price of a holiday home in France was £320,389, the average number of weeks rented was 17, and average rent per week was £945.
This means that over the course of a year, rental income could be as high as £15,645 – money you won't be getting if your property is sitting empty for most of the year.
'This is a good sign that people are still eager to spend abroad. Overseas property owners should look at this as a golden opportunity to rent to British holidaymakers,' said Nick Fullerton, Managing Direct of FC Exchange.
France tops the polls in terms of holiday rentals. Statistics from Holiday-Rentals.co.uk revealed that so far in 2008 the top five most popular regions in France are Paris, the Riviera, Corsica, Rhone-Alps and Provence.
'French hotels tend not to be popular with British holidaymakers as rooms can be small and we have all stayed in places where the carpet goes up the walls. So private rentals are extremely popular,' said Joanne Lewis, an independent travel operator.
Paris remains a consistent high performer due to its year-round appeal for city breaks, coastal regions are popular and the Rhone Alps region, which has traditionally attracted skiers in the winter months, is currently gaining popularity as a base for activity breaks in summer, especially since larger resorts such as Les Gets now re-open their lifts and other resort facilities around mid-June, she added.
There are also good deals for those buying in France. The French government is giving a refund of the full VAT rate – just under 20% – when you buy certain new-builds. There are also guaranteed rental income for at least the first five years under various leaseback programmes.
