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