Owning your own holiday home is no longer the preserve of the rich and famous, says Paula John  

A low interest rate environment and the growth in equity in people’s homes have left many in a position where they can afford to invest in a second property.

According to research from Halifax, many of us look within these shores when we choose to invest in a part-time pad.

In fact, of the 3.5m Britons who now own holiday homes, almost a third have their second property in the UK.

Spain is the next most popular location, with 16% of Britons’ holiday homes, followed by France with 7%.

The UK is particularly popular with 35 to 44 year olds with more than half having holiday homes here. However, for Scottish holiday home owners the most popular location for their property is the USA (26%).

What, where, why?

Bungalows make the most popular second homes, with 35% of all respondents and 50% of over 65s citing a one-story property as ideal.

Terraces are the least popular choice for holiday homes (2%), while a flat would be the holiday home choice for 25% of people aged 18 to 24.

The defining factor for three quarters of holiday homeowners is ease of travel.

Proximity to a beach is the most desirable factor for holiday homes for 25 to 34 year olds, while the 55 to 64 year olds stated a preference for secluded areas.

Money matters

Around 41% of people say they would be willing to spend between £75,000 and £100,000 on their holiday home.

Many people must be in a position to buy a second property outright, as only 19% said they would take out a new mortgage to finance a holiday home.

The majority (25%) of over 65s prefer to use their savings.

Colin Kemp, managing director of Halifax Estate Agency commented: “Many people see a holiday home simply as a place to get away from it all but many also view it as a long term investment. By buying a holiday home that is within easy reach, they can enjoy their investment whilst hopefully earning money from it at the same time so it is not surprising that such a large number of people are choosing holiday homes in the UK.

“However, Spain continues to reign as the most popular location outside of the UK to buy a second home. With budget airlines and low cost mortgages adding to its attractions, one million foreigners are expected to set up home on the Spanish coast in the next six years.”