2million Britons have two homes BUT property crash might put many in jeopardy

More than two million people own a second home in Britain, official figures revealed for the first time yesterday.

They show 5 per cent of the adult population have a family home and at least one other property.

The figures, compiled by the Office for National Statistics, show the extraordinary wealth which is tied up in housing.

But experts said they also highlight the risks homeowners face if there is a property crash.

The second homes are typically a country house for those who live in a city, or a town house for those living in the countryside.

A rising number own a buy-tolet property, typically a flat in a city centre.

Those who live in the South- East are most likely to be among the 2.1million with more than one property.

Seven per cent of adults in the region own a second home, compared with only 3 per cent in the North-East, North-West and the Midlands.

The most common locations for second homes include the coasts of Norfolk and Cornwall and Devon, all of which attract large number of families during the school holidays.

Another popular location is Central London, typically for a flat or small house used by a working couple whose family home is in the countryside.

A recent report by the estateagents Savills found such homebuyers are most likely to be professionals in their forties, such as lawyers and doctors, or those who work in the financial services industry.

Others are in the fortunate position of inheriting a home from their parents, grandparents, other family members or friends.

The figures are particularly high because if a married couple own a second home together, the husband and wife are counted separately.

The ONS's Wealth and Assets Survey also shows hundreds of thousands own a second, or even third, home overseas.

Two per cent of adults – nearly 850,000 – own land or property abroad.

There is likely to be significant overlap between the differentfigures as many Britons own several homes here and overseas.

The most common locations are Spain, France and Florida.

The report, by the accountants Grant Thornton and Lombard Street Research, predicts the number of Britons who own asecond home overseas will soar to two million by 2025.

It reveals two typical types of second homeowners – pensioners who like to spend the winter overseas and wealthy Britons over the age of 45.

The soaring price of property here is the reason people can afford homes overseas. Since 1996, the price of the average home has jumped from about £60,000 to £180,000.

Many Britons are living in homes worth £300,000 and are able to buy a flat in a Spanish apartment block on the coast for a third of this price.

The boom in cheap flights with no-frills airlines has also helped, making it easy to visit a second home in Europe for weekends, not just longer holidays.

But the figures also highlight homeowners' exposure to risk if property prices plunge.

Most experts predict house prices will be frozen this year.

But the most pessimistic forecast, from Capital Economics, expects a fall of 5 per cent this year followed by an 8 per cent fall in 2009.