Jet-to-Let

Jet-to-Let is a phrase referring to the boom in buying properties overseas in order to generate an extra income, get on the property ladder or as a pure investment. Coined by Dominic Farrell’s 2006 book, The Jet-to-Let Bible, the phrase has been adopted by journalists and marketeers to describe the new opportunities for investment that have been opened up by low-cost flights and cheap property overseas. An estimated 3.5 million people from the UK (Halifax Bank), own homes abroad, many of whom rent their properties while they are not using them. Popular destinations for Jet-to-Let property include traditional holiday home destinations such as Spain, Florida and France but also include emerging markets such as Bulgaria and Dubai.

Driven by the sharp rise in the UK property market, the need for Jet-to- Let has mainly arisen from young people who have been priced out of the domestic property market, and older people who have a large amount of equity in their homes. In 2005, a YouGov survey ( [http://society.guardian.co.uk/housingdemand/story/0,,1397196,00.html ‘Jet to Let buyers look for first home in the sun’ The Guardian online] ) found that nearly half of 18-29 year olds in the UK were planning to buy their first property overseas, where they would spend an average of £101,000 on a property compared to the average UK price of £160,000. After selling these properties, young people can often afford to purchase a home in the UK.

In contrast, older people use the equity from their homes in the UK to finance a holiday or retirement property overseas.