The majority of Fly to Let holiday home owners do not think a rise in travel costs due to green taxes will not impact upon their investment, claims the latest results of a survey carried out by Savills Research and Holiday-Rentals.co.uk.

The survey also found that Fly to Let investors are now targeting locations that are served by low cost airlines and where there is good rental potential. Many investors have capitalised on the growth in city break tourism and have increasingly bought in cities including New York, Barcelona, London and Paris.

Other city break rental destinations growing in popularity include areas of Eastern Europe such as Prague, Krakow and Budapest.

Savills estimates that there are currently 425,000 UK owned overseas properties, which reflects an increase of 35,000 units during 2007, with the total value of UK owned foreign property now worth £58billion.

Jacqui Daly, Director Savills Research said: “Whilst the issue of climate change is an important concern for the majority of owners it is not seen as a barrier to travel.

In fact there has been a notable increase in the number of British second home owners buying property further a-field, with locations such as Dubai, the Far East and the Caribbean increasingly emerging as destinations of choice.”

There still remains a considerable price differential between overseas and UK second homes, which is a key driver of demand. The majority of UK buyers estimate that they will have about £225,000 to fund their next overseas purchase with buyers remaining optimistic over the long term.

Greg Grant, Managing Director, Holiday-Rentals.co.uk said: “Investing in overseas property, both for leisure and investment purposes remains a key aspiration for many Britons. Taking regular holidays is also a top consumer spending priority, despite environmental concerns and the credit crunch.

“As a result, we expect to see continued growth in the holiday home rentals market, both in terms of supply and demand. As more owners become aware that there is strong demand for holiday lets and that it is relatively simple to self-manage rentals, privately owned holiday accommodation will become an increasingly important sector of the travel market. In these tighter times, savvy owners will realise that a month’s rental can, if timed well, pay for much of a year’s running costs on a property.”

• Savvy English Fly to Let buyers have been taking a lead from Russian businessmen who are seeing the potential of Cyprus in a new light.

The country has become a popular investment destination for holiday rental homes but its safe environment has also attracted a number of Russian businessmen who leave their wives and children in Southern Cyprus permanently when they travel away on business.

The appeal to the Russians is that they can take advantage of the tax regulations between Cyprus and Russia which means that they can legally avoid taxes if the property in Cyprus is owned by a Russian based company.

The Russian community has grown particularly in Limassol where astute business people have seen the potential for capital growth in property due to the forthcoming Limassol Marina.

This is to be a major complex of high quality homes, together with commercial and yachting facilities, some on man made islands. Located at the historic harbour this construction is expected to bring Cyprus into the world property market sphere.

“Without a doubt Southern Cyprus is becoming a chic and sophisticated country in which to own property. The Government’s plans for future growth will potentially change the whole ambiance of the island in the next few years making it excellent for investment,” says Serge Cowan, MD of Unique Living.

“Geographically the island’s location makes it superb for business people needing to reach all parts of the world. Financially the prospect is for a very fine future,” added Cowan.

Unique Living is currently marketing a number of homes in Southern Cyprus with over 44 homes in the Limassol area alone and has been officially appointed as a UK agent for marketing of the Limassol Marina, when it is officially launched.
An example of some of the properties the company also has available are new beachfront villas and apartments at Amathusa Coastal Heights.

The properties border a beach front road and eucalyptus grove to the South with unobstructed sea views. All properties enjoy landscaped gardens and private swimming pools.

Prices for two bedroom apartments start from 335,000 euros/£265,945 approx.

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