According to UK retail lender Barclays, 37% of British people are considering buying houses abroad, however many underestimate the cost involved.
Although some British people are in-tune with overseas property prices, many are underestimating the price tag on properties in popular destinations such as Spain, France, Italy and Portugal, according to new research commissioned by Barclays.
Just under half (48%) of respondents think that the cost of a property in Spain is under GBP100,000. However the average is GBP105,000 and a three bedroom villa in the Costa del Sol starts at around GBP282,000.
Meanwhile, two-thirds (65%) estimated that the price of a property in France would come in at under GBP150,000, but according to Barclays, British people would have to have a budget of at least GBP166,000 to buy the average French home.
Commenting on the findings, Suzanne Clay, head of European Business Development at Barclays, said: The rush to buy property in the sun shows no sign of abating, but our research suggests that some people perceive house prices in popular destinations to be cheaper than here in the UK. This is not necessarily the case, so they need to plan their finances accordingly.
The Barclays-commissioned study has been published to support its campaign to make foreign home seekers aware of its suite of mortgage products designed for overseas purchases.
The company says it has the largest presence of any UK bank in the European mortgage market and it has newly launched a range of packaged accounts specifically designed for British people living in or owning properties in popular continental locations.