Insight into the Spanish property market, guides to help you make informed decisions, and a directory of real estate professionals and home service providers from a source you can trust.
This is a website for buyers, owners, and sellers of property in Spain, offering reliable information and resources to help you get things done with confidence. It is run by Mark Stücklin, author of the Spanish Property Doctor Column in The Sunday Times (2005-2008), and the book ‘Need to Know: Buying Property in Spain’ published by Collins.
When you buy or sell property in Spain the sums of money are large, perhaps one of the biggest financial decisions of your life. The high transaction costs you will face like taxes and commissions only make the decision more important to get right. And when you own property in Spain you face a host of extra challenges to manage, and costs to control. Unfortunately, the Spanish property market is opaque and full of pitfalls, and notoriously unprofessional. Buying and selling property in Spain is not a decision to be taken lightly, and you may find it much easier to buy than sell if you don’t take care. In this market it is crucial to do your own research, and don’t rely exclusively on people who are trying to sell you something – let’s just say they might not have your best interests at heart. Spanish Property Insight is the only independent source of information and analysis of the Spanish property market. Don’t even think about buying or selling property in Spain without subscribing to Spanish Property Insight.
With the UK going to the polls tomorrow to choose a new Government, I take a stab at what the different outcomes might mean for the British demand for property in Spain.
As regular readers will know, the British are by the far the biggest group of foreign buyers of property in Spain (see pie above), so the election result could have a material impact on demand in areas where the British dominate, mainly the Costa del Sol and the Costa Blanca.
In general terms what are the possible outcomes?
Conservative landslide of 100 seat majority or more.
Increased Conservative majority, enough to make May feel secure from backbench rebellions.
Small Conservative majority, but not enough to give May a strong hand.
Hung parliament, no party with working majority, most likely a Labour-led coalition
Labour overall majority
Personally, I expect outcomes 1 or 2 because I don’t think Labour under Corbyn will gain enough traction with the electorate. But I never expected Brexit, and I never expected Trump, so I no longer trust my instincts when it comes to elections.
1 and 2 would comfort the currency markets, leading to an appreciation of the pound. That would be good for British demand, which I believe is mainly driven by purchasing power, with concerns about the status of British citizens within the EU after Brexit a secondary concern.
3 would lead to increased uncertainty, and worries about the negotiating power of the British side, with a greater chance of no-deal or a bad deal, which I think would weaken the pound. That would reduce British demand for property in Spain.
4 would be bad news in the form of even greater uncertainty and a bigger hit to the pound, with a corresponding impact on British demand. The pound has already declined by 4% against the euro in the course of this election campaign, which has seen Labour do better than expected, and the Conservatives much worse. Outcome 4 might even be worse in the long run than 5…
5 would send the pound reeling immediately in expectation of Corbyn’s economic policies, including re-nationalisation of the parts of the economy, a huge expansion of spending, borrowing, and taxation. I expect 5 would pummel British demand through a big decline in the pound, say -20%.
All pure guess work of course. Let’s see what tomorrow brings, and what happens to the pound.
Everything you need to know about property in Spain
Login or Register to read articles without any adverts in the text.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.