In wake of the credit crunch, the standard holiday home investment model is clearly broken, and there is growing evidence that it never really existed in the first place. Once a luxury enjoyed only by the very wealthy, the availability of cheap foreign mortgages and low-cost plane tickets reinvented holiday homes as a commoditised investment for the masses.
A study by property consultant Savills and HolidayRentals.co.uk shows that the market took off in 2000, when UK-owned foreign properties were valued at £10bn. This figure had exploded to £58bn by 2008.
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