Study Ranks New Zealand As The 11th Most Affordable Country for Luxury Second Homes Amidst Rising UK Property Taxes

Proven Partners, specialists in luxury real estate marketing, have released a “league table” ranking 20 popular destinations based on their affordability for UK second-home investors. This comes at a time when UK regions are witnessing significant hikes in property taxes for second homes.

The rankings considered factors like property prices, taxes, fine-dining costs, premium car hire rates, flight costs from the UK, and potential Airbnb revenue.

The study, underpinned by data from 3,600 luxury property listings on JamesEdition and other sources, assigned each country an “affordability score” out of 10.

New Zealand, with an affordability score of 7.4, stands out for its unique combination of natural beauty, quality of life, and luxury living.

Despite a higher average price for luxury waterfront 3-bedroom properties at NZ$ 1,289,856 (£623,119), New Zealand offers a distinct value proposition. The country’s stunning landscapes, coupled with a high quality of life, make it an attractive destination for those seeking a luxury retreat.

One of the key highlights for New Zealand is its potential for Airbnb revenue (NZ$ 814 / £393 per night) during the peak months, which, along with a moderate property tax environment, offsets the higher property and living costs. This makes New Zealand not just a luxurious destination but also a practical choice for long-term investment.

Colin Hannan, Co-CEO at Proven Partners, commented, “New Zealand’s ranking is reflective of its growing appeal in the global luxury real estate market. It offers an unparalleled blend of adventure, tranquility, and exclusivity, making it a top choice for those who seek more than just a second home.”

This study gains relevance against the backdrop of recent announcements in the UK. Regions like Pembrokeshire are imposing a 100% council tax premium on second homes, and Scotland is set to double council tax on such properties.

These measures, aimed at addressing local housing shortages, are significantly increasing the financial burden on second-home owners in the UK.

Ronan Hannan, Co-CEO at Proven Partners, added, “The luxury property market is witnessing a shift, with buyers expanding their horizons beyond traditional markets. New Zealand, known for its breathtaking landscapes and high standards of living, is becoming a favored destination for discerning investors.”

He further noted, “While the price points in New Zealand are higher compared to other destinations, the overall experience and long-term value it offers are unmatched. It’s not just about owning a property; it’s about embracing a lifestyle.”

The complete rankings, showcasing New Zealand’s position, are available for review below.

Countries	Rank	Affordability Score (10 = Most Affordable)	Avg. Price of Luxury Waterfront 3-Bed Properties	Price/ Sqft	Airbnb Avg. Nightly Revenue (During Jun-Aug)	Avg. Flight Ticket Price From UK (Aug)	Avg. Price of Tasting Menu At Top-Rated Fine Dining Restaurant	Avg. Price For Premium Car Hire Per Day	Property Tax Score (5 = Very Low Tax)
Ireland	1	10	NZ$ 939,383	NZ$ 526	NZ$ 662	NZ$ 141	NZ$ 360	NZ$ 275	4
Cyprus	2	9.3	NZ$ 1,050,807	NZ$ 596	NZ$ 797	NZ$ 555	NZ$ 166	NZ$ 261	5
Mauritius	3	8.9	NZ$ 1,116,349	NZ$ 658	NZ$ 580	NZ$ 2,554	NZ$ 130	NZ$ 211	5
South Africa	4	8.7	NZ$ 1,141,607	NZ$ 505	NZ$ 472	NZ$ 3,167	NZ$ 215	NZ$ 128	4
Croatia	4	8.7	NZ$ 1,150,705	NZ$ 787	NZ$ 1,110	NZ$ 364	NZ$ 275	NZ$ 186	4
Greece	5	8.6	NZ$ 1,011,021	NZ$ 621	NZ$ 1,377	NZ$ 520	NZ$ 360	NZ$ 457	3
Portugal	6	8.5	NZ$ 1,034,062	NZ$ 629	NZ$ 789	NZ$ 329	NZ$ 368	NZ$ 228	3
Turkey	6	8.5	NZ$ 1,008,796	NZ$ 565	NZ$ 793	NZ$ 842	NZ$ 213	NZ$ 346	3
Malta	7	8.4	NZ$ 1,144,789	NZ$ 731	NZ$ 631	NZ$ 263	NZ$ 213	NZ$ 149	2
UAE	7	8.4	NZ$ 1,269,221	NZ$ 712	NZ$ 1,592	NZ$ 886	NZ$ 455	NZ$ 257	5
Canada	8	8.2	NZ$ 1,078,046	NZ$ 644	NZ$ 805	NZ$ 1,745	NZ$ 855	NZ$ 112	3
Montenegro	9	8.1	NZ$ 1,315,738	NZ$ 936	NZ$ 772	NZ$ 375	NZ$ 128	NZ$ 379	4
Spain	9	8.1	NZ$ 1,079,366	NZ$ 776	NZ$ 702	NZ$ 277	NZ$ 371	NZ$ 253	3
Sweden	9	8.1	NZ$ 1,298,060	NZ$ 604	NZ$ 565	NZ$ 296	NZ$ 555	NZ$ 118	3
Italy	10	7.8	NZ$ 1,110,830	NZ$ 646	NZ$ 973	NZ$ 402	NZ$ 433	NZ$ 250	2
New Zealand	11	7.4	NZ$ 1,289,856	NZ$ 851	NZ$ 814	NZ$ 2,426	NZ$ 215	NZ$ 188	3
Netherlands	12	6.7	NZ$ 1,947,073	NZ$ 1,083	NZ$ 667	NZ$ 275	NZ$ 402	NZ$ 161	4
France	13	6.6	NZ$ 1,348,110	NZ$ 1,153	NZ$ 791	NZ$ 176	NZ$ 509	NZ$ 402	1
Switzerland	14	6.5	NZ$ 2,657,530	NZ$ 1,691	NZ$ 1,014	NZ$ 172	NZ$ 495	NZ$ 108	2
Austria	15	6.4	NZ$ 1,855,664	NZ$ 1,615	NZ$ 1,269	NZ$ 331	NZ$ 391	NZ$ 250	3