With the UK BTL market becoming more costly in April because of the UK Government’s proposed tax increases, overseas property and mortgage firm Simon Conn believes buyers are more seriously considering an overseas purchase this year.

The most popular places to buy abroad from the enquiries the firm received last year were Spain, France, USA, Portugal, Ireland and Italy. Interest has been growing in South Africa, although there are not many mortgages available, and Greece and Cyprus were also popular.

The company reported: ‘The USA has hung onto third place in the popularity stakes for the second year running. Enquiries for higher priced properties continue, usually in the $500,000 and above price bracket. New York, Florida and California continue to be the most popular places.

‘South Africa is very popular, even though there are concerns regarding the economy and civil unrest. Lending is still very restrictive, with only 50% LTV if you are a non-South African national, or 70% if you are a South African expat. Interest rates are around 9.50-9.75% and mortgages are still only available in Rand.

‘More people seem to be going back to look at Dubai now, but there is still a glut of rental properties leading to lower rental returns.’