Wealthy buyers shun UK homes

Wealthy property investors are turning their backs on the UK as the housing market lurches from one crisis to the next.

Investec Private Bank today reported a "significant increase" in demand for
£1 million-plus mortgages from clients looking to buy properties overseas.

This year has seen particular interest in properties worth more than 3 million in prime areas of Italy and southern France, with Spain falling out of favour because of problems in its market.

Investec's Andrew Arnott said: "Many high net worth individuals are increasingly looking to purchase overseas properties, as they see them as representing a better investment opportunity.

"We have seen a lot of High Street lenders withdraw from the £1 million-plus mortgage market but people buying abroad still like to deal with a bank in the UK.

"The majority of our clients purchasing a property abroad are looking for a second home, but investment potential is at the forefront of any decision."