More holidaymakers are choosing holiday homes based in the UK than any other part of the world, research has found.

A survey commissioned for Halifax discovered that 3.5 million consumers now own a holiday home, with one third of second home owners owning their property in the UK.

Unsurprisingly, the sunny south-west the most popular location for holiday homes, while Spain is the most popular overseas destination for British second homes.

Meanwhile, seven per cent of us are likely to purchase a holiday home in the next five years, with the majority happy to spend up to £100,000 on their second property.

Halifax Estate Agents said: "Many people see a holiday home simply as a place to get away from it all but many also view it as a long term investment. By buying a holiday home that is within easy reach, they can enjoy their investment whilst hopefully earning money from it at the same time so it is not surprising that such a large number of people are choosing holiday homes in the UK.

"However, Spain continues to reign as the most popular location outside of the UK to buy a second home. With budget airlines and low cost mortgages adding to its attractions, one million foreigners are expected to set up home on the Spanish coast in the next six years."

Latest Average House Prices - 9th August 2006