As the recession hits Brits’ pockets, more are choosing to buy second properties as holiday rentals.

Holiday apartments with three bedrooms are in most demand, say property gurus Knight Frank, because they are being seen as holiday apartment rentals for grandparents and children as well as paying guests.

This has seen a boom in so-called generational holidays.

Knight Frank researcher Grainne Gilmore

Fewer people are choosing to spend their money on holidays abroad, which is due to a combination of cost versus earnings and poor exchange rates for foreign currency against pound sterling.

Overseas the venture is risky, as several construction firms have borne the brunt of a dip in foreign investment from this market.

Instead of choosing new builds or to build, affluent Brits are choosing from the property already available.

That is not to say purchasers want property to do up, Knight Frank adds.

They want something ready for holidaymakers with all the modern conveniences, not an old cottage which needs a lot of time and money to fix up and maintain.

Houses are top of the list, with apartments also an option provided they have plenty of room for families to stay away from home during holiday periods like Easter, Summer and the Christmas and New Year breaks.

Most popular place to purchase a second home is the South West of England in places such as South Hams, St Agnes and Padstow, which are served by airports in Exeter, Plymouth or Newquay as well as trains from London.

Investment in second homes in this area reached record levels in 2010, with Knight Frank expecting this trend to continue as markets continue to fluctuate throughout Europe, due to the impact of the debt crisis in Greece.