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More and more Britons who own a second home in the sun are selling up and looking for better deals, leading to a dramatic surge in overseas property sales.

The numbers buying a property in the US has soared by nearly 70%, according to a new property index from foreign exchange specialists Currencies Direct.

There has also been a 23% increase in Britons repatriating the money from an overseas property sale back to the UK.

Many are taking advantage of other currencies’ relative strength against the pound, allowing them to make strong returns on their investment at a time when real estate values around the world have plateaued or fallen.

Britons who bought a property in the eurozone in 2007 could be enjoying a 20% gain on currency fluctuations alone.

The number of Britons transferring currency to Spain has fallen, but the average value has increased, due to the continuing strength of the euro.

Phil McHugh, trading floor manager at Currencies Direct, said: “The data suggests we are seeing a flight to value. Investors seem to be cashing in on assets in Europe while exchange rates make it favourable, either to invest in the soaring domestic property market or shift investment to more promising overseas property markets.

“Getting value when buying overseas, whether as an investment or a second home, is a delicate balancing act, factoring in property market fluctuations, interest rates and currency movements.”

Despite the increase in foreign sales, many Britons retain their taste for foreign boltholes, with increased transactions across several countries.

The biggest rise was in the US, where the number of British buyer transactions has rocketed by 69% year-on-year. This was fuelled by America’s struggling property market and the weakness of the dollar.

Ireland’s troubled market has also prompted a substantial increase in demand, with transactions up 33% year-on-year, but average transfer sizes down 22%, as investors snap up bargains.

Transfers to Spain are down nearly 10% year-on-year, thanks in part to the country's property market problems.

But the average value has risen 26% as buyers pump more sterling into their properties to offset the rising euro.

McHugh added: “Our research shows how important foreign exchange can be when investing in overseas property. It is our hope that, over time, our Foreign Property Index will help buyers and investors better understand how exchange rates can affect their purchases – and guide them on how to minimise the impact of negative fluctuations."

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