Brexit “blip” puts Spanish homes dreams on hold : : British buyers of Spanish real estate are Brexited Out by the antics of the EU and UK politicians. They appear to be so confused by the blitzkrieg of Brexit news and views they can’t begin to focus on their dream home in sunny Spain
As a result, Brits have missed the start of the 2019 property buying season. For decades they led the way as the Spanish property market returned to business after Christmas and Three Kings public holiday.
Would-be British buyers would browse their favourite Spanish property websites, phone friends and family living on a favourite Costa to check for nearby bargains and make a benchmark shortlist of any villas or apartment that matched their requirements. A quick search for cut-price flights and fly to buy planning begins in earnest…
But, not this year. So far.
They appear to be taking a “rain check”. It looks like they need a short recovery period while Brexit legalities are sorted out and life can return to something like normal again.
They will have noted the new bi-lateral agreement between the UK and Spain safeguarding each countries ex-pats. Free healthcare is unlikely to be on offer if there is a no-deal brexit. And that, at last, the UK government has provided detailed information for Brits currently living in Spain and for the 1,000s more planning to relocate there – or buy a holiday home.
The British Embassy in Madrid has stepped up its information for buyers of Spanish homes and, following a Q&A with ex pats and potential buyers, will post Brexit updates on its website’s excellent property advice section.
There is new information that will be most useful to buy to let investors, most of whom find themselves taxed out of the stalled British property market. They are also facing tougher UK mortgage conditions. Many BTL investors are prepared to invest the proceeds from UK forced disposals into Spanish property. But not before the Brexit cannon smoke has dispersed and they have a clear vision of the new potential.
Living the Dream spurs property investment
Demand for Spain’s property bargains has risen quarter on quarter. In the Brexit Years, Scandinavian and Benelux buyers have been at the front of the queue for the best deals – mainly in Costa Blanca and Costa del Sol.
For British buyers, Brexit may yet prove to be just another obstacle on their journey towards Living the Dream in Europe’s favourite holiday destination. In recent years 1 in 4 property purchases in Spain were made by Brit buyers. This was despite crooked town mayors, dodgy builders, greedy bankers, dishonest developers, sales scams and metres of official red tape,
This market share is likely to continue after Brexit. Spain’s unique blend of culture, climate, natural beauty, cuisine, superior transport, beaches and Brit-friendly attitude will remain unrivalled for foreign property buyers. The Brexit blip is unlikely to stop Brits investing their favourite vacation destination.
Out of the EU, maybe. Out of Spain…Vive la vida loca.
Author: Elliott Barnett, international property writer | Image: Brexit: Which way is out of the EU?