44% of FTBs willing to go overseas to get on ladder

Fairinvestment.co.uk has revealed that 44% of Brits would move overseas to get a foot on the property ladder.

The price comparison site carried out research on the attitudes of first-time buyers and their views on buying foreign property.

The website highlights that last year, National Savings and Investments found that 25% of the British people would consider buying abroad, where property is cheaper and they could save for a deposit on a house back in the UK.

Fairinvestment.co.uk says this illustrates that the number of Brits willing to up sticks and leave has almost doubled in just 10 months.

The website’s own research has found that 8% of respondents have already bought their first property abroad.

This means 52% of first-time buyers have already or are willing to relocate to buy their first home compared to 47% that say they would not consider it and would still go for a first-time buyer mortgage in the UK.

James Caldwell, director at Fairinvestment.co.uk, says: “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.

“Overseas they can sometimes find cheaper property prices and a lower cost of living, which could make buying their first home more affordable, while they continue a high quality of life.”

He adds: “This growth in the number of people willing to move abroad is probably not a coincidence, as debt levels are rising and there has been a shortage of property in this country which has pushed prices up in recent years.”

A survey carried out by HSBC reveals Britain is the third most expensive country to live in, preceded by France and Norway.

The study investigated how far British wages would go if an individual lived the same lifestyle abroad as they do at home in the UK and found that a year’s salary would last for more than two years in Peru, Egypt, Argentina and Costa Rica.

Last year, the Council of Mortgage Lenders found that in August, at the height of the credit crisis, first-time buyers were borrowing up to 3.9 times their income and stretching themselves thin in order to reach the first rung on the ladder.

Caldwell adds: “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.”