Up to four out of five second home owners are content with the returns they earn on overseas properties, according to new research from currency broker Currencies.co.uk.
Its study among owners found that average annual rental income on second homes abroad is £9,500 with one in six owners earning more than £15,000 a year while maintenance costs add up to an average £2,200.
Around 54% of the 400,000 UK residents who are estimated to own homes abroad rent them out for part of the year while around two-thirds of – equivalent to 263,000 – own homes outright without a mortgage or any other loan.
Currencies.co.uk’s research shows just one in five second home owners are concerned about the returns they are earning on their investment.
The company conducted the research after seeing a 32% increase in the number of its customers buying properties in Europe in the last three months, compared to the same period in 2010 and expects this trend to continue if sterling strengthens against the euro.
Tom Higham, director at Currencies.co.uk said: “Buying a second home abroad can potentially be risky with buyers having to negotiate different legal systems and currencies.
