The latest ‘Open Skies’ agreement between the EU and the US may see a higher demand for holiday lets in America as competition between airlines increases.

There has been a recent upsurge in investors taking up property opportunities in the United States due to the economic climate and strong UK pound.

Following decades of strict regulation, free competition on transatlantic flights will finally come into effect on March 30th. Until now, only four airlines were allowed to run on the lucrative UK – US routes, which see in excess of 50,000 passengers a day.

The new ‘Open Skies’ agreement which, when introduced in Europe, saw the likes of Ryanair and Easyjet break the market, will allow long-haul budget carriers to compete with giants such as BA and Virgin Atlantic.

Unless fuel prices fall, it will be highly unlikely that off-peak fares will reduce much further. However, as major airlines such as Air France and Continental launch their new routes, there should be a reduction in the price of tickets during peak time - summer and Christmas seasons.

In the UK, as larger airlines move to Heathrow to launch budget flights to Fort Lauderdale and San Diego, budget carriers will be able to use spare take-off slots in cheaper regional airports and offer largely discounted airfares to users.

Zoom airlines is advertising return flights from London Gatwick to Fort Lauderdale in Florida for as little as £299 and to New York, in the middle of July, for £339 including tax.

According to the latest figures by the American National Association of Realtors, the majority of foreign purchases in Florida were made by the British. The main reason for most of these property purchases was as an investment with a view to renting the property or providing a holiday home to both family and friends.

As competition begins for the cheapest airfare to America, investment property in the USA, particularly in coastal areas, could begin generating some outstanding returns to investors.

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