Holiday Property Abroad - Impact of the UK homes market
Despite a global property crash the holiday home dream remains undiminished but consumers are now far more risk-averse. A quarter are concerned about being ‘ripped off’ or about possible legal problems and belief in the investment value of owning a home abroad has also halved over the past two years.
Following years of exponential growth the overseas property market must now pick itself up, dust off its oversupply of holiday homes and reconnect with buyers more motivated by lifestyle factors than short-term money-making schemes, but warier than ever of the pitfalls.
Despite a global property crash the holiday home dream remains undiminished but consumers are now far more risk-averse. A quarter are concerned about being ‘ripped off’ or about possible legal problems and belief in the investment value of owning a home abroad has also halved over the past two years.
Following years of exponential growth the overseas property market must now pick itself up, dust off its oversupply of holiday homes and reconnect with buyers more motivated by lifestyle factors than short-term money-making schemes, but warier than ever of the pitfalls.
This report provides an overview of trends in holiday property abroad, investigating the core market factors, strengths and weaknesses, consumer dynamics and likely future developments.
Key issues
How has the recession impacted on the ownership of holiday property abroad? How has it changed ownership intentions/aspirations?
Who are the key consumers who own/are looking to own holiday property abroad?
How is the UK housing situation affecting the market?
What is happening in the overseas housing markets of interest? Which destinations are popular? Have these changed?
Are holiday properties abroad seen as just being for old people?
How does holiday property abroad fit in with key trends such as travel ‘authenticity’, the rise of independent travel, even slow travel?
Is owning holiday property abroad seen as too restrictive? What are the barriers that stop people owning holiday property abroad?
Can owning a holiday home abroad be squared with ‘responsible travel’?
In 2009, the number of overseas holidays taken fell by an estimated 14.5% year-on-year to 38.9 million, returning to 2001 levels.
24.5 million adults now see holidays as a ‘luxury’, up from 19 million in 2007. 9-10 million see holidays as a ‘necessary spend’ or a ‘right’.
By demographics, older ABC1 consumers take the most holidays (both in the UK and overseas) – their travel behaviour has been least affected by the recession, especially the pre-retirement 55-64 group.
How has the recession impacted on the ownership of holiday property abroad? How has it changed ownership intentions/aspirations?
