Young Britons escaping UK market to buy property overseas

British first-time buyers have moved their investments abroad according to new ONS data.

There has been an 80% increase interest over the last 12 months, with UK citizens under the age of 40 choosing to purchase foreign property rather than jumping onto the British property ladder.

The data has shown that two million people aged between 25 and 44 went overseas in the 10-year prior to 2012.

At the same time though, the overall rate of emigration is decreasing.

The co-founder of the Intergenerational Foundation, Angus Hanton, told the Independent: “At risk is a potential brain drain, asset drain and generational drain if these young people choose to move abroad permanently in the future, having been let down by the UK.”

“Policymakers must do more to help the many under-40s locked out of the housing market to put down property roots at home rather than abroad.”

By 2019 there will be an extra 1.2m renters in Britain, according to forecasts released by consultancy firm Savills last week.

This coincides with rising property prices, which are expected to increase by 20% in the same timeframe.

However, young people are being pushed out of the markets as housing becomes more difficult to come by and investors flock to develop more affordable areas.

Mervyn Jones is an analyst at Savills who told the Independent this week: “The recommendation was to try to develop a new sector of market rent which, of course, the Government has attempted.

“These are hard measures because it's a big problem. But the housing market is still stagnating because of supply.”