The insistence of most Britons that they will not forego their foreign holiday may provide a boost to those investing in overseas property, particularly in the holiday rental sector.

Holiday firm TUI Travel has noted that this luxury is the last one that many will forsake, with research by its subsidiaries Thompson and First Choice finding that 88 per cent of consumers would rather make cutbacks in other areas.

Thomson and First Choice customer director Tim Williamson said the favoured destinations in 2009 are likely to include locations such as the Balearics, continental Spain, the Algarve, Madeira, Italy, the Canary Islands and Florida.

Such prospects may bolster those keen on investing in overseas property in these locations.

Earlier this month it was predicted that overseas property buyers will see sterling’s value become more favourable in the coming months.

Chief economist at foreign exchange brokerage World First Jeremy Cook said: "The overall feeling for 2009 is that there will be a pull back from the edge of a stronger sterling."

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