1 in 5 UK FTBs considering buying in Eastern Europe

1 in 5 UK FTBs considering buying in Eastern Europe
8th March 2007

A survey conducted by National Savings and Investments (NS&I) found that one in four young people in the UK is looking to invest in property overseas, with Spain, Australia, New Zealand and the USA proving popular locations.

Following recent reports indicating that conditions within the UK housing market are worsening for first-time buyers (FTBs), new research has revealed that one in five are considering investing in property abroad to gain access to the domestic market.

The organisation also found that one in five FTBs is considering moving into the property markets in eastern European countries to take advantage of growing economies and rising house prices.

Commenting on the trend, Dax Harkins, senior savings strategist at NS&I, said: "British people clearly have a great appetite for buying in this country but find it difficult to save for a deposit back home.

"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," he remarked.

NS&I's report follows recent research by specialist insurer Hiscox, which found that 40 per cent of young people in the UK are considering purchasing a home abroad to get onto the property ladder.

Steve Langan, UK managing director of the firm, said that while a significant number of young people are struggling to overcome barriers to the UK's housing market, many view overseas property as an "affordable" and "lucrative" way of investing.

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