Abstract
About this report
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’?
Table of Contents
- Issues in the Market
- Key issues
- Definitions
- Abbreviations
- Market in Brief
- Still dreaming (if not living) the dream
- Boom time over for many
- But buyer' s market for some
- When I' m 64
- No more wild west
- A fraction of the cost
- Internal Market Environment
- Key points
- Residential assets fuelled overseas home growth...
- Figure 1: Composition of UK household sector' s net worth, 2000-08
- ...but boom turns to bust
- Figure 2: Average house prices in the UK, by region, 2004-09
- Global price plummet
- Figure 3: Percentage price changes in selected property markets, Q2 2009
- Overseas holiday value drops
- Figure 4: Overseas holidays and expenditure, 2004-09
- Year of the staycation?
- Figure 5: Domestic holidays and expenditure, 2004-09
- Little and often is still the pattern
- Figure 6: Percentage of adults booking UK and overseas holidays, 2009
- Holidays still top priority
- Figure 7: Expenditure priorities for the year ahead, January 2009
- Holiday haunts dictate choice of property
- Figure 8: Top 20 holiday destinations, by estimated number of visits,
2003-08
- Flight from the South East
- Figure 9: Airports used in the last 12 months, 2005-09
- Low-cost resilience
- Figure 10: Scheduled passengers carried by main low-cost airlines,
2004-09
- Niche urban segment
- Win some, lose some
- Rail alternative
- Slow boat to Spain
- Broader Market Environment
- Key points
- Fragile confidence
- Figure 11: GfK NOP Consumer Confidence Index, August 2008-August 2009
- Figure 12: Trends in personal disposable income and consumer
expenditure, 2004-14
- Professional development
- Figure 13: Forecast adult population trends, by socio-economic group,
2004-14
- Live forever
- Figure 14: Forecast adult population trends, by lifestage, 2004-14
- Broadband Britain
- Figure 15: UK broadband penetration, by demographics, April 2009
- Currency crisis
- Figure 16: Sterling exchange rates at 31 March each year, 2005-09
- Competitive Context
- Key points
- Value seekers
- Figure 17: Type of accommodation used on last holiday, 2005-09
- Home and away
- Figure 18: Households in England with a second home -- domestic and
abroad, 1997/98-2007/08
- Strengths and Weaknesses in the Market
- Strengths
- Weaknesses
- Market Size
- Key points
- Past
- Figure 19: Households in England with a second home abroad,
1997/98-2007/08
- Present
- Future
- Segment Performance
- Key points
- Figure 20: Location of second homes abroad, 2006/07 and 2007/08
- Back to basics
- Spain
- France
- Portugal
- Italy
- Florida
- Turkey
- Companies and Products
- Key points
- Property supply
- Online intermediaries
- Timeshare
- Fractional ownership
- Travel industry
- British Homes Group
- Erna Low
- Fractional Life
- Holidaylettings.co.uk
- Homesoverseas.co.uk
- HPB -- Holiday Property Bond
- The OwnerGroups Company Limited
- Primelocation International (findaproperty.com)
- Property-abroad.com
- RCI
- Rightmove.co.uk
- Property Ownership and Aspirations
- Key points
- Figure 21: Ownership and intention to buy, 2007 and 2009
- Temporary hiatus
- Urban professional wanna-buys
- What People Think About Property Abroad
- Key points
- Figure 22: Attitudes towards holiday properties/timeshare abroad, 2007
and 2009
- Jangling nerves
- That' s entertainment
- Keep it in the family
- Fear of commitment
- Appendix -- Property Ownership and Aspirations
- Figure 26: Ownership and intention to buy, by demographics, July 2009
- Appendix -- What People Think About Property Abroad
- Figure 27: Most popular attitudes towards holiday properties/timeshare
abroad, by demographics, July 2009
- Figure 28: Next most popular attitudes toward holiday
properties/timeshare abroad, by demographics, July 2009
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