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A new report from the Office for National Statistics claims that spending on overseas property has risen by 45% - to £23 billion of property - owned by 257,000 Britons (a massive 72% of these buyers are from England).

Spain and France, the traditional favourites, accounted for 27% and 20% of all second homes respectively. While the Spanish Ministry of Tourism predicts that 1 million foreign buyers will buy a second home in Spain in the next 6 years, prices have already soared. This rise in prices has made it more difficult for locals to buy in some places, which is affecting resale. On the Costa del Sol, for example, it is becoming increasing difficult for investor buyers to sell off plan projects and restrictions on selling below market value could severely depress the market.

France continues to do well, with Paris highlighted as the best investment destination in a recent report from PricewaterhouseCoopers on emerging trends. Trisha Mason, managing director of VEF (UK) Ltd, said: "France appears to have maintained its place as second favourite destination for the buying of overseas holiday homes. This has now been held consistently for 5 years with Spain taking top place. I believe, however, that if we were to add in the number of properties being bought for investment and full time living then France would soar ahead. The majority of VEF's clients now buy for full time living, followed by investment purchases with holiday homes bringing up the rear."

Commenting on opportunities for agents in France, Mason said: "VEF work with many UK agents, and despite the fact that French commissions are nowhere near equal to that given by Spanish developers, we have a continual stream of agents wishing to partner with us to sell property in France to their clients. They may earn more from one Spanish sale to 3 French sales but the market is looking to UK High Street agents to find them French property, they are far more likely to go to the road shows put on by Spanish developers and buy direct."

The report also indicates that, between 2003-4, over a third of all homes owned abroad were outside Europe (with 154,000 in the US). The relentless PR around Dubai in the last year has been very successful, with a lot of interest in its projects from a range of buyers. This has generated fierce competition within the UAE itself, as Oman, Ras al Khaimah and Kuwait vie to be the new Dubai.

A recent report from HIFX also showed that Australia and New Zealand, which have long been popular second home or emigration targets, are still attracting UK buyers. According to the currency specialist's latest Global Property Index, based on data from internal enquiries, Australia leapt from one sixteenth to just under a fifth of all enquiries (a 12% increase on last month). Mirroring the UK market in many respects, Australia's property boom has cooled but a number of areas, and its major cities, are starting to pick up - with good investment properties around the Central Business Districts.

The so-called BRIC nations are also luring more buyers. This includes Brazil, Russia, India and China - all of which promise high short term growth as their enormous economies continue to mature. However, Beijing and Shanghai are already cooling from an investor frenzy last year following government measures to curb speculation.

The new accession states, and those still negotiating EU membership, from Eastern Europe are pulling in more and more buyers looking for weekend retreats and investment homes. As transport infrastructure improves, and more carriers offer flights to Bulgaria, Croatia and Czech Republic, these areas will see a rise in both tourism from the UK as well as buyer interest.