Orlando top for overseas property
Filed under: House Prices
UK overseas property buyers will see their money go furthest in Orlando in the United States, a study of 10 holiday home hotspots has found.
Buyers can snap up a four-bedroom home with a garden and private pool in Florida's Orange County for around £125,000, helped by a favourable exchange rate and relatively low levels of fees, according to research from HSBC.
By comparison, the price of an average house across England and Wales stands at just under £163,000, according to Land Registry figures.
The HSBC study found a "huge discrepancy" in the size of a property that UK buyers can purchase on the same budget overseas, due to the effect of exchange rates, tax levels and the strength of local markets.
HSBC said Florida's property market is only just starting to see prices rise again since the bubble burst in 2006, helping foreign buyers to get more for their cash. Sterling and the US dollar have seen a relatively stable relationship since March.
A spokesman for HSBC said: "The pound received some indirect support as a safe haven, with the Government's commitment to tighten finances attracting investors into the UK bond market. This helped the pound to keep pace with the more traditional safe haven of the US dollar, which now has markets increasingly weary, especially as the US elections approach."
Spain's Costa Blanca offers the most space for money in Europe out of the locations studied, researchers found. The property market there experienced a fresh slump this year and £125,000 will buy a three-bed house with a shared pool.
The HSBC spokesman said the euro has had a tough six months, adding: "Currency markets became increasingly nervous about the euro's life expectancy as the Greek general election in May revealed opposition to the bailout programme and associated tax hikes and government spending cuts and the threat of a Greek exit loomed large. As the mood on Greece improved, fears regarding Spain intensified, centred on its weakened banking system in the wake of a burst property bubble and ongoing recession."
The research was carried out last month, looking at locations in Orlando, Alicante, Bodrum, Malaga, Algarve, Pisa, Palma de Mallorca, Nice, Gryon and Paphos.
Top destinations for expats
- NewBuy reservations to reach 1,500
- Rents rise for fifth month in a row
- London drives rise in house prices
- Compare home insurance quotes