Credit Crunch impacting on overseas property investors.

 

Overseas property owners are feeling the impact of the global credit crunch as increasing numbers of owners are finding it more difficult to visit their holiday homes in destinations including France, Spain and Cyprus. As such, larger numbers of overseas owners are now looking to rent out their properties, which were previously reserved as holiday homes.  

 

The combined effect of rising flight prices, the cancellation of some low cost routes and the failure of airlines such as Zoom and XL Airways means that many people are unable to access their holiday homes as easily as they have done in the past, according to research from Europe's leading holiday homes website.

 

'Many overseas property owners who previously kept their homes for private use are now renting out their homes to holidaymakers. This is partly due to them taking advantage of an extra source of income during the credit crunch, but also because many of them are spending less time abroad as a result of rising flight prices and less low-cost routes,' said Andrew Gibson, managing director of DirectHolidayBookings.co.uk.

 

'The property downturn is not peculiar to the UK, therefore overseas homeowners can't easily sell these properties and are considering other options to ensure they are financially viable,' he added.

 

The situation has led to an increase in bookings taken from overseas, especially from those living in the country where the properties are located or from other countries which still have good transport links to the destination.

 

Although tourism markets are bracing themselves for a downturn next year because of the credit crunch Gibson believes the holiday home rental sector will be okay as it is a cheaper option.

 

'I believe we are seeing a rise in bookings as costly flight prices mean people are economising on accommodation and choosing holiday homes and apartments in favour of hotels,' he said.