Abstract
There are now over 211,000 UK households that own second homes abroad. Over capacity in the Spanish, Turkish and Bulgarian markets has seen prices plummet, but owning a second home remains a dream for most UK consumers. Most purchases are funded by savings, rather than by second mortgages, but the desire to buy-to-let is growing and holiday companies, retailers and agents should take note. There are also numerous opportunities for offering search, management, maintenance and leasing services in a bid to combat those negatives that dissuade people from taking the step. Buyers and ' serious shoppers' are decidedly senior and high-end in terms of demographics, but there is a new wave of family-centric potentials coming onto the scene.
As well as Mintel' s survey of 2,000 adults conducted through NOP, this report also contains a survey conducted by ILM-THR amongst 200 plus current owners and potential buyers in the western Algarve.
' Holiday Properties Abroad' are properties owned by UK citizens that are used for personal or commercial purposes, or a mix of both. Resort properties are included, but static caravan or timeshare arrangements are excluded from consideration. Although people seeking to move abroad are discussed within our consumer research data, the focus remains on those seeking a second property for holiday purposes.
An adult, for the purposes of Mintel' s research, is anyone aged 16 or over.
Table of Contents
- Issues in the MarketMain issues
- Definitions
- Abbreviations
- ILM-THR
- Market in Brief
- Bank holiday
- Second homes abroad exceed 0.2 million
- Interest cools but heat still appeals
- Planes, trains and domiciles
- A new generation of dreamers
- Portugal: a new frontier for travel industry
- Internal Market Environment -- Property
- Key points
- House prices
- Figure 1: Average house prices in the UK, by region, May 2002-07
- Property dominates asset ownership
- Figure 2: Ownership of selected financial and non-financial assets, UK
household sector, 2006
- Figure 3: Composition of UK household sector' s net wealth, 2000-06
- Figure 4: Composition of UK household sector' s net wealth, 2000-06
- Housing tenure
- Figure 5: Current housing tenure in the UK, May 2006
- Internal Market Environment -- Holiday
- Key points
- Figure 6: Domestic and overseas holidays volume, 2002-07
- Figure 7: Domestic and overseas holidays expenditure, 2002-07
- Figure 8: Average spend per trip, 2002-07
- Increasingly frequent trips
- Figure 9: Percentage of adults booking UK and overseas holidays, 2002-06
- Transport issues
- No-frills carriers open up Spain and Italy
- Figure 10: Top 20 destinations, by number of visits, 2002-05
- Regionalisation of airport usage
- Figure 11: Airports used in the last 12 months, 2002-06
- Figure 12: Scheduled passengers carried by main low-cost airlines,
2002-06
- Threats to low-cost/property love in
- Figure 13: Passengers of four major low -cost carriers Easyjet, Ryanair,
Flybe & Bmibaby, 2002-2012
- Rail to the rescue?
- Eurostar
- Railteam
- Broader Market Environment
- Money to explore
- Figure 14: Trends in personal disposable income and consumer
expenditure, 2002-2012
- Target younger families and investors
- Figure 15: Trends in the age structure of the UK population, by gender,
2002-2012
- Figure 16: Forecast adult population trends, by socio-economic group,
2002-2012
- A to B is A to Z of property
- Figure 17: Forecast adult population trends, by socio-economic group,
2002-12
- Internet penetration
- Figure 18: Internet penetration, by gender, socio-economic group and
age, 2002-06
- Consumer spending priorities
- Figure 19: UK spending priorities, January 2007
- Rates boost Emirates and States
- Figure 20: Annual average exchange rates for Sterling against the euro
and US Dollar, 2002-07
- Strengths and Weaknesses in the Market
- Strengths
- Buoyant property market
- Increasingly mobile society
- Increasing travel frequency
- New locations
- Weaknesses
- Cooling interest
- Dreamland
- Transport threats
- Rip off fears
- Competitive Context
- Key points
- Figure 21: UK households with a second home -- domestic and abroad,
1996/97-2005/06
- Market Size and Forecast
- Key points
- Total market size
- Figure 22: UK households with a second home abroad, 1996/97-2010/11
- Property market set to grow by around 10,000 a year
- Properties by location
- Figure 23: Location of second homes abroad, 2004/05
- Market Segmentation
- Spain
- France
- Portugal
- Italy
- Florida
- Dubai
- Property Ownership and Aspirations
- Key points
- Figure 24: Ownership and intention to buy, August 2007
- Waking up to reality (in one' s only home)?
- Potential buyers static
- Who are the homeowners?
- Who are the homeseekers?
- Property Ownership and Aspirations -- Detailed Demographics
- Figure 25: Ownership and intention to buy by demographics, August 2007
- Where To Buy?
- Key points
- Figure 26: Import factors in choosing a property abroad, August 2007
- Bank holiday
- Traditional values
- Touring the building sites
- Little Britain
- Buying considerations by demographics
- The new sun seekers
- Buy to let set
- Where To Buy? -- Detailed Demographics
- Figure 27: Most important factors in choosing a property abroad by
demographics, August 2007
- Figure 28: Further important factors in choosing a property abroad by
demographics, August 2007
- What Consumers Think about Property Abroad
- Key points
- Figure 29: Attitudes to properties abroad, August 2007
- Now or later?
- Casa Smith
- Costa del crime
- Property pit stop
- Concrete investment
- Who thinks what?
- Property pester power?
- The shy retiring
- Reality bites
- Investing in youth
- Flight restrictions
- What Consumers Think About Property Abroad -- Detailed Demographics
- Figure 30: Most popular attitudes to properties abroad by demogarphics,
August 2007
- Figure 31: Further attitudes to properties abroad by demogarphics,
August 2007
- The Consumer -- Scenario Forecasts
- Alternative scenarios
- Scenario 1 - The end to cheap flights
- Figure 38: Target groups' responses to cheap flights, August 2007
- Scenario 2 - Making management and maintenance easier
- Figure 39: Target groups' responses to easier management, August 2007
- Scenario 3 - EU regulation
- Figure 40: Target groups' responses to better eu legislation, August 2007
- The range of future scenarios
- Figure 41: Summary of scenario market & forecasts, 1996-2012
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