First time buyers look abroad

High house prices and economic problems in the UK are leading to many first-time buyers looking abroad, a study has found.

Research by Fair Investment Company has found that nearly one in ten first time buyers have already bought their first property overseas, while 44 per cent are thinking of doing so.

Last year, National Savings and Investment found that 25 per cent of British people would consider buying abroad where property is cheaper and they could save for a deposit on a house back in the UK, illustrating that the number of Brits willing to up sticks and leave has increased in just 10 months.

The latest study highlights a number of reasons for people choosing to look away from home, such as the impact of the credit crunch on the British housing market. However, issues including the availability of property in the UK and the effect this has had on prices were flagged up as other factors behind this trend.

'First time buyers are being driven to sunnier climes for a route onto the property ladder as a result of the credit crisis which has been shaking the foundations of the UK property market.' said James Caldwell, director at Fair Investment. Overseas they can sometimes find cheaper property prices and a lower cost of living.'

He added that this could make a first home more affordable, while still enabling people to enjoy a high quality of life.

If they do invest in the UK, first time buyers tend to look at high growth markets. This means that people can buy property while it is still relatively cheap and sell it on at a later date for a much higher amount.

'While property prices in Britain have now slowed, people are still unsure where the market is going, and some first time buyers seem reluctant to invest here when the situation could change over the coming months while the full effect of the credit crisis is felt,' concluded Mr Caldwell.