Topend investors look to foreign markets

Affluent property investors in the UK are increasingly snapping up second homes overseas, it has been revealed.

According to Investec Private Bank, the slowdown in the British housing market has dented the appeal of the country among many top-end buyers.

Therefore, a growing number are turning their attentions toward prime areas in countries such as Italy and France.

Andrew Arnott, spokesperson for Investec, commented: "They see them as representing a better investment opportunity."

He added that while many foreign property buyers are looking to purchase a second home for personal use, some are also considering the investment potential of the residence.

According to research by Savills and Holiday-Rentals, there are currently about 425,000 foreign residences owned by people in the UK.

Figures showed that this is 55% up on the amount recorded in 2003 and an increase of 35,000 units on this time last year.