spaincolours.com, A bridge towards spain - Britons swamp Spanish property market

British people bought 40% of all houses built on the Spanish Costas in 2003, according to a report out today.

Almost two thirds of those properties were bought as holiday or retirement homes. The flood of British homebuyers has helped to push the price of property in the Costas and the Balearic Islands, which are up by 21% - triple the traditional house price growth in the area.

In France, too, local homebuyers have been feeling the upward pressure on the property market from an influx of British second-homers. In the Languedoc Roussillon region, property prices have increased by up to 28%, compared with the national average house price inflation of 11.3%.

A combination of low cost airlines flying to an increased number of destinations, historically low interest rates and soaring house prices giving homeowners access to large chunks of equity have combined to make buying abroad a realistic dream for growing numbers of British people.

David Roberts, CEO for Barclays Private Clients, the company which carried out the research, said: "The current housing boom in the UK has given people access to huge chunks of equity from their homes, bringing a second home in Europe, where house prices are cheaper, within the reach of record numbers of British people.

When you add cheaper airfares to more destinations, and the lowest European interest rates in a generation, into the equation, it is easy to see how cash rich Britons are driving up property prices.

Note: from Guardian Unlimited