One in 10 British owners of foreign property plan to sell up

Tax increases and glut of homes on the market blamed for making the cost of ownership of a property abroad too expensive

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The Independent Online

According to a new report from currency specialists HiFX, higher mortgage rates, property tax rises and concerns about the eurozone worries have encouraged homeowners to put their house on the market.

The figures suggest that the country poised to see the biggest exodus is Spain, where 45 per cent of British residents are trying to sell their property.

"Since the housing bubble burst in 2008, property prices in Spain have fallen by a third," said Mark Bodega, Director at HiFX, "which has had a detrimental effect on the value of second homes. It is no surprise that property owners are fleeing the country as the outlook remains poor, with high levels of unemployment and slow growth."

France is also set to suffer, with just over a quarter  of Brits planning to sell up, partly due to the recent increases in capital gains tax and tax on rental income - since these tax hikes were implemented, 28 per cent of Brits say that the cost of ownership of a property abroad is becoming too expensive.

For those looking to sell up, finding a buyer is proving difficult. Around 30 per cent of second home owners have had their property on the market for over 12 months with almost one in ten claiming that their property has still not shifted after two years. Around 45 per cent blame the number of properties on the market, especially in Spain, which is suffering from a significant surplus of homes.

One in five Brits claim that they have failed to sell their home as they cannot get the sale price they expected and nearly three quarters of second homeowners say that their property value has decreased over the past year.