Paphos Times, January 2007, Page 5

A place in the sun has never been so popular, research shows, with the number of overseas properties owned by UK households almost trebling in the past decade.

An estimated 300,000 overseas houses have been snapped up by Britons - a figure that has ballooned from just 102,000 in 1995, according to a study by business and financial adviser Grant Thornton.

It is said there could be 1.3 million British nationals living in other countries by 2005, if a ‘gently rising' trend of those upping sticks to retire to sunnier climes continued.

Up to 10% of British homeowners could own a second home overseas within the next 20 years, up from a current 2%, the report says.

Maurice Fitzpatrick, a senior tax manager at Grant Thornton, said: "Any continued increase in overseas second home ownership is heavily dependent on the strength of the UK property market and the wealth it generates.

"It is this liquidity which influences people in taking the necessary steps to invest abroad.

"By 2025, this could mean that 1.5 million households in the UK will own a property overseas - an amount which would equate to one-tenth of UK property owners."

Given the current level of interest rates and income, the research said, the UK housing market was set for another good year.

But it warned that the danger of a house price bubble in 2008-0 would hit demand for property abroad.

The analysis, conducted with Lombard Street Research said overseas homeowners typically fell into two camps - pensioners who have their main residence abroad and affluent Britons who own a second property overseas as an investment or holiday home.

Demographic changes over the next 10 years could also boost demand, according to the research.