Homes in Portugal, Spain and France were the most likely to be bought by cash buyers, according to the survey by holiday home insurer, Schofields.

It found that 67 per cent of holiday home owners who purchased their property in the last year were able to do so without taking out a mortgage.

Of that majority, 77 per cent were able to afford the purchase with their own savings and resources. The remaining buyers borrowed from friends and family or combined their resources with other buyers to split the cost.

Some 63 per cent of holiday home owners admitted that their home was a ‘project purchase’, a property priced down due to the amount of renovations and modernisations required to make it ready for use.

The average price of a holiday home was £135,750.

Paul Schofield of Schofields Holiday Home Insurance said: “Buying a holiday home is a real investment, with many owners looking to buy property as a means of investing their cash in something which will see them enjoy a good return in the years to come.

“The market has been promising of late, offering a great opportunity to get on the ladder abroad, receive a regular income and then generate a profit upon future sales.”