| The call for new taxes on flights to reduce carbon | | | | need to sell as the rental income pays the mortgage. |
| emissions could impact the prices of properties, | | | | There could be a glut of properties come to the |
| according to a UK based overseas property company. | | | | market which will send prices downwards.' |
| 'There has been more discussion and calls for action | | | | Exceptions to the rule could be in the two European |
| recently over the impact that air travel is having on the | | | | tax havens of Monaco and Andorra, where there is |
| environment,' they say, 'And one of the most obvious | | | | no income tax for residents. |
| ways to cut air travel is to raise the price of travelling | | | | 'Historically tax havens have been popular no matter |
| through taxes. It's a win-win situation for governments, | | | | how the economy is. When someone buys a property |
| more tax revenue and being seen combating global | | | | in Monaco it often doesn't matter to them if it's a few |
| warming at the same time. It's only a matter of time | | | | million Euros as they're going to save more than that in |
| before cheap air fares on the scale we see it today | | | | tax during the time they stay there. Andorra is slightly |
| comes to an end'. | | | | different as it's a tax haven but also people buy ski |
| Owning a second home and a property abroad has | | | | apartments there, adding to demand'. |
| shown to be an aspiration for the majority of UK | | | | Andorra property prices have risen an average of ten |
| residents by recent surveys, and low cost carriers | | | | per cent a year in the last decade, and some |
| have opened up new overseas property markets by | | | | predictions are for that figure to be closer to fifteen |
| flying to destinations not covered by other airlines, or | | | | per cent for 2006. |
| forcing flight prices down where they compete directly | | | | If governments do start introducing new air fare taxes |
| with more established carriers. | | | | to slow and possibly reverse the rise in air travel there |
| Property prices within a one hour drive of regional | | | | could be good news for some property buyers though. |
| airports served by the low cost airlines have tended to | | | | 'In some areas the second home market has |
| escalate in recent years, and it is these areas that | | | | increased prices significantly, with many of the younger |
| would be hardest hit by any increased taxes on flying. | | | | local population being forced to move away from their |
| The areas which would feel least impact would be | | | | towns and villages. |
| northern France, which many UK second home | | | | The UK and US populations are quite mobile, but in |
| owners access via ferry and the Channel Tunnel, and | | | | some countries popular with holiday home buyers |
| areas where owning a property abroad was in vogue | | | | there are three or four generations of the same family |
| long before the new airlines started, and when air | | | | in a village or town. But as overseas property buyers |
| fares were proportionately higher than they are today. | | | | have moved in and pushed prices up, the younger |
| Access to France from the UK has improved recently | | | | generations ahave been forced to look away from |
| with Eurotunnel cutting the journey time by twenty | | | | these popular areas because they cannot afford a |
| minutes. | | | | property in their home town anymore, and a lot of the |
| 'The Costa del Sol for example we feel wouldn't be | | | | local employment has become seasonal. If real estate |
| impacted much by increased air taxes - although over | | | | prices come down they might be able to afford to live |
| development could bring prices down there anyway'. | | | | in the villages where they were brought up if they |
| But there is a warning that the lower priced end of the | | | | choose to do so. Some will still move away but at |
| market could be hit more than the top end. | | | | least they will have a choice.' |
| Bargain Properties | | | | Conversely, far from changing traditional towns and |
| 'There has been a significant increase in second home | | | | villages into holiday resorts, overseas property buyers |
| ownership in the last decade', say the company. 'Gone | | | | can sometimes have a positive affect on preserving |
| are the days when it was just the wealthy who | | | | traditional village life. |
| owned an overseas property. Developers in Spain, | | | | 'In France for example, many of the rural villages were |
| Greece and Cyprus have built apartment blocks with | | | | dying a slow death as the younger generations moved |
| units of two and three bedrooms that are affordable | | | | away to the bigger towns and cities to find work. |
| for a lot of middle income families. Given that | | | | British second home buyers have revived the villages |
| mortgages are readily available and it's often just | | | | by buying run down properties and renovated them, |
| twenty per cent of the asking price that needs to be | | | | breathing new life into the communities. The property |
| found an overseas home has become reality for | | | | market is nothing if it isn't adaptable,' they conclude, |
| millions of Europeans. But if air fares increase | | | | 'And while there will be regions that will suffer as a |
| significantly and the holiday makers who rent the | | | | result of a declining market, there will be winners too. |
| owners apartments and villas declines, quite a few will | | | | |