UK house prices lead some to consider buying elsewhere

A new study by insurer Hiscox (LSE: HSX) has found that a substantial portion of first-time homebuyers in the UK are considering buying abroad rather than at home. There is even a name for them: “Barbies”. That stands for “buy abroad, rent in Britain”.

According to the company’s research, 40 percent of young people looking at buying a first home are thinking about buying outside the UK. Thirty-five percent of them say they believe that they will never be able to afford a house in the UK.

These attitudes come at a time when house prices in the UK have gone so high that mortgages for up to 50 years are not unheard of. In the survey, 88 percent of respondents in all age ranges called house prices the main barrier to buying in the UK. That number rose to 97 percent for those ages 18 to 24.

The survey found that men are more inclined than women to think about buying abroad. Thirty-three percent of men said they were willing to consider such a step, while 22 percent of women said they would consider buying abroad an option.

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