Driven by the sharp rise in the UK property market, the need for Jet-to- Let has mainly arisen from young people who have been priced out of the domestic property market, and older people who have a large amount of equity in their homes. In 2005, a YouGov survey (‘Jet to Let buyers look for first home in the sun’ The Guardian online) found that nearly half of 18-29 year olds in the UK were planning to buy their first property overseas, where they would spend an average of £101,000 on a property compared to the average UK price of £160,000. After selling these properties, young people can often afford to purchase a home in the UK.
In contrast, older people use the equity from their homes in the UK to finance a holiday or retirement property overseas.
Buy-to-Let Lending Goes Mainstream; Once Considered a Risky Business, John Heffernan Looks at Non-Standard Mortgages
Mar 15, 2006; Byline: John Heffernan THE decision of Alliance & Leicester to offer buy-to-let mortgages later this year reflects how this type...