Young 'BARBIES' Rent in the UK, Buy Overseas
August 22nd, 2006
Insurer Hiscox has identified a new group of young buyers who are planning to invest in overseas property while renting in the UK.
According to a study commissioned by Hiscox, 27% of prospective first-time buyers say they would consider buying overseas to get onto the property ladder. Observing that the younger the buyer, the more likely they are to be deterred from purchasing in the UK, the study also found that 84% of 18-24 year olds believe buying abroad is a more affordable option than buying in the UK (compared with 74% across UK adults).
Based on these findings, Hiscox has labeled this emerging group of first-time buyers as ‘barbies’ (buying abroad, renting in Britain).
“More young people than ever before are finding their route into the UK property market blocked and are turning to overseas property investment as a more affordable and potentially lucrative investment option,” said Steve Langan, UK managing director at Hiscox. “In the 1980s, yuppies started to push UK property prices up and the signs are that twenty years later the barbies could do the same for property prices abroad.”
First time buyers in the south east were most likely to consider investing overseas, at 38%, while almost half of the 37% of under-35s worried about never owning their own property live in London and the East Midlands (21% and 24% respectively). Looking at the data more broadly, 33% of men would consider buying a foreign property compared to only 22% of women.
