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News: UK is still most desired holiday home location

Holiday homes are becoming increasing popular among Britons, and the most desired destination is within the UK itself, Halifax Estate Agents has reported.

Nearly a third of all British holiday homeowners have a property in their native country the report reveals, and Spain comes a distinct second, the location for one in four second homes.

Some 30% of Britons would choose the South West for their holiday home, while the least popular region was the Midlands.

The survey also found that the trend of buying holiday properties is likely to continue, with 7% of those questioned saying that they were likely to make a purchase within the next five years. If this becomes a reality, then the number of second homes would double.

Colin Kemp, the managing director of Halifax Estate Agents, said that holiday homes were not simply a place to escape and rid oneself of worldly woes, but "many also view it as a long term investment".

With the UK housing market in good shape and set to grow steadily over the next few years, second home owners not only have the option of a change of scenery, but they will also strengthen their asset base while they do so.

"By buying a holiday home that is within easy reach, they can enjoy their investment whilst hopefully earning money from it at the same time so it is not surprising that such a large number of people are choosing holiday homes in the UK," Mr Kemp added.

He said that it is also important to consider the merits of Spain, as the most popular location outside the UK to buy a second home. "With budget airlines and low cost mortgages adding to its attractions, one million foreigners are expected to set up home on the Spanish coast in the next six years," he reasoned.

Consumer's optimism in purchasing a second home often depends on how readily they can assemble a mortgage plan. Their current positive outlook will be buoyed by the news that Abbey National is extending its buy-to-let range of mortgages. Abbey has changed its lending criteria for all type of landlords, whether they are buying a buy-to-let property for the first time, looking to expand their buy-to-let portfolio or looking to remortgage.

Paula Ickinger, Abbey product executive of mortgages and loans said: "Our low up front costs and flexible lending policy make it easy for landlords to enter the market and benefit from the investment opportunity."

The falling up front costs and service charges will be welcomed with open arms by the growing number of potential buyers searching for a second home within the UK.

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