As the UK grapples with soaring property prices, Euronews Business examines intriguing alternatives: islands around the globe available for less than the average UK home.
With the increasing prices of real estate across the UK and interest rates remaining stubbornly high, the dream of purchasing a home is becoming increasingly elusive for many. Recent figures reveal that UK house prices have surged at their fastest annual rate in almost two years, with Nationwide reporting a 2.4% increase in the year leading up to August 2024.
In light of this, one might wonder if investing in an entire island could be a more affordable option than a house in the UK. According to a recent analysis by CasinoApps.com, the typical three-bedroom UK home, averaging 828 square feet, is priced around £284,691 (€337,682.27).
In contrast, the islands featured in the study are at least 1 acre (43,560 square feet) in size, with locations ranging from Canada to Panama and Finland.
Neil Roarty, content lead at Casino Apps, emphasized the challenges facing young and first-time buyers, stating, “The data reveals a daunting landscape for young individuals aiming to enter the housing market, with average property prices escalating. For many young people today, owning a home feels more like a distant fantasy.” He elaborated on the adverse effects of low savings interest rates and escalating living costs, which spiked dramatically post-COVID-19, reaching an annual inflation rate of 11.1% in October 2022, the highest in over four decades.
Affordable Islands: Where Can You Buy Cheaper than a UK Home?
One remarkable option is Blowfish Island in Panama, available for just £61,807 (€73,175.51). This six-acre mangrove island, located near the popular Isla Popa and close to Bocas del Toro, offers ample space for anyone looking to escape the hustle and bustle. Notably, Blowfish Island has Rights of Possession, enabling buyers to occupy and develop government-owned land, making it an appealing investment for foreigners.
Another island opportunity is La Cornelia in Nicaragua, priced at £70,413 (€83,373.99). Spanning 1 acre and situated within Las Isletas de Granada, this undeveloped island provides a blank canvas for your dream residence, complemented by access to electricity and flourishing fruit and palm trees.
For those seeking a close-to-home investment, Teerisaari in Finland is a long, narrow island priced at £115,973 (€137,580.51). This three-acre property, nestled in Lake Visuselkä near Virrat, features rocky shores and flourishing woodlands but may require further inquiries regarding construction possibilities.
Wild Cane Key, also located in Panama, is available for £140,827 (€167,084.30). This 3.4-acre island in Bocas del Toro boasts multiple building sites, coconut palms, and coral reefs, with easy access by helicopter or boat under favorable weather conditions.
Another Finnish gem, Talassaari, offers a six-acre retreat priced at £163,452 (€193,912.10). Situated near Rautalampi in Linnansalmi Lake, it comes with native forests and a cozy log cabin, while also granting additional building rights for future expansion.
If you’re interested in a colder climate, Lac Echo Island in Canada presents a unique opportunity at £273,831 (€324,972.90). Located on Lake Echo, approximately 45 minutes from Montreal, this 2.28-acre island is surrounded by majestic pine, fir, and cedar trees and is perfect for off-grid living, although connections to electric utilities are also available for development.
What’s Driving the Surge in UK House Prices?
The rapid increase in UK house prices can be attributed to various factors, such as heightened demand fueled by population growth and an influx of single-person households. The limited housing supply exacerbates this issue, alongside planning and construction restrictions that hinder new developments. Consequently, soaring land prices have contributed to rising rental costs as well.
Although recent temporary relief on Stamp Duty Land Tax (SDLT) provided first-time buyers a momentary reprieve, this support is set to conclude on March 31, 2025. After this date, the nil-rate threshold will revert to £125,000 from the current £250,000, imposing stamp duty on all residential properties valued above this amount. For first-time buyers, the threshold will decrease to £300,000 from £425,000.
Impending Changes to Stamp Duty Relief
The government’s anticipated withdrawal of stamp duty relief has raised concerns. David Hannah, group chairman of Cornerstone Tax, remarked, “The decision to adjust stamp duty bands indicates a lack of cohesive strategy. To achieve the goal of constructing 1.5 million new homes, it is essential not to alienate landlords or burden first-time buyers with higher costs, as this will ultimately hinder the market.” He warned that reduced stamp duty thresholds could contribute to a significant decline in housing market activity, ultimately impacting buyers.
Photo credit & article inspired by: Euronews
