Spain's popularity fuelled by cheap Euro mortgages and cheaper flights
Banco Halifax Hispania claims that Spain's continued popularity has been fuelled by the demand for low rate Euro mortgages and the boom in low-cost flights.
The Spanish arm of Halifax (the UK's largest lender) quotes figures from the recent Official Social Trends Report that Spain accounts for 27% of all second homes overseas owned by Brits and also highlights recent research from YouGov which found that 50% of 18 to 29 year olds plan to buy property aboard.
"With the low cost of mortgages, many people have now realised that owning property in Spain is a real possibility and Banco Halifax Hispania has continued to see an increase in the number of UK residents wanting to buy property abroad," said Ian Smith, head of European operations at Halifax. Apart from being able to provide mortgage products specifically designed for UK buyers, the bank is able to call upon an approved panel of qualified solicitors and surveyors in the Costa del Sol and Costa Blanca regions which have local knowledge and experience of acting for British customers.
Banco Halifax Hispania offers variable and fixed rate mortgages in Euros, secured on the Spanish property - with loans available up to a maximum of 70% of the property's value (to find out more, visit www.halifax.es).
An increase in new routes from budget airlines has also helped the Spanish market to take off, with research from OAG showing that the number of low-cost flights to and from Spain is up 25% on last year (and low-cost operators within Spain have increased by 160%). This, in turn, has driven the development of new regional airports.
The Civil Aviation Authority (CAA) recently reported that passenger numbers from UK airports increased to 217m in 2004 - an 8% increase on 2003's figures. Regional airports have also seen passenger figures triple from 1987 to 2005 and saw 9% growth in 2004 alone (increasing to 88 million passengers).
Looking at the survey data in more detail (as an indicator to local UK agents who might be able to identify local clients interested in overseas property), the highest growth in regional airports has been in Newcastle, which saw a 21% increase (0.8 million passengers), followed by Bristol at 19% (0.7 million) and Leeds Bradford airport at 17% (0.4 million).
Flights to Spain from the UK rose by 4% (1.2 million) in 2004, compared to 2003. Research from Euromonitor's 'Travel and Tourism in Spain' report also found that one to three day breaks are the fastest growing type of holiday in Spain - accounting for 37% of all trips in 2004.
Another key growth factor for Spain has been the rise in immigrants and divorcees, as highlighted by a recent report. Again, more flexible finance also stimulates growth by making property more affordable for this range of buyer types.
Did you know…?
Spanish Finance and Economy Minister Pedro Solbes recently announced that the government was investigating a rise in the number of €500 notes in Spain - because it is a key indicator of an increase in black market deals (these notes are much harder to trace than cheques or credit cards and estate agents demanding cash to avoid tax often ask for payments in this form). Solbes confirmed that there were now around 100 million €500 notes in circulation in the country (a rise of about 35%).
Source OPP May 06