UK Buyers – Brexit? What Brexit?
Spanish real estate agencies are reporting that the number of UK buyers, buying a home on the Costa del Sol has doubled as the UK’s date for leaving the European Union looms ever closer. Indeed, in they have seen a 100% increase year-on-year over the last 12 months.
However, Brexit may not be the only thing encouraging UK buyers to do their buying now. A BBVA bank forecast for Spanish property prices suggests that they will rise by 5% in 2018 and many feel that it his factor that is the major factor spurring on UK buyers.
Taylor Wimpey España, which has played a significant role in getting a swathe of new build complexes to completion on the Costa del Sol says it has seen a sustained increase in UK buyers looking for new properties. It also points to the exchange rate, which has an important bearing on buyers’ decision making. Its Sales Director, Marc Pritchard also added that it has experienced a 15% rise in the number of property reservations right across Spain and the Balearic Islands, and that reservations for off-plan properties are at their highest level for seven years.
There has been some good news for the GBP to Euro exchange rate over the past few days. EU negotiator Michel Barnier’s cautious welcome of prime minister Theresa May’s new white paper has helped the Pound stabilise at £1 = €1.13 and this has tested a four-month low of around £1=€1.12. The exchanges believe that if the EU is even more positive about the white paper once it finally receives it, and Theresa May manages to contain the possibility of even more rebellion within her own party, then the pound sterling may look even healthier for those British people buying in the Eurozone. Indeed, there are many political factors in the coming months that could affect sterling’s foreign exchange rate, getting rid of hard Brexiters in the government being one of them.
UK tourism to Spain is also flourishing. The CEO of Costa del Sol Tourism says 2018 is “the most important summer in the region’s history.” Tourism numbers and income are set to grow by 2% and an additional 80,000 visitors from the UK have helped to boost the statistics.
It seems that despite concerns about what will happen to Brits living in Spain post-Brexit have been largely swept aside in favour of what the Costa del Sol has to offer in terms of lifestyle and its famous attractions, including the golf. As of yet we do not know what will happen regarding access to healthcare, pensions and the possibility of work visas once the UK has exited the EU, but whatever the outcome, it is not decreasing UK buyers’ enthusiasm for a home in the sun.
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