Interest in buying foreign property continues to grow during 2014 compared to 2013, according to the latest report from the Overseas Guides Company, which cites cheap mortgages, a stronger pound and value for money as key attractions for British buyers.
Online resource the Overseas Guides Company (OGC) saw enquiries between January and September 2014 rise by 17 per cent year-on-year – from 29,299 to 34,287, highlighting how conditions in the UK and abroad have become more favourable for British buyers this year.
Euro mortgage rates remain at historic lows, with Eurozone banks more willing to lend to British buyers, while property prices in hot spots across Europe are also still enticingly low, although for how much longer is unknown. Add to the mix the stronger pound and the UK’s comparatively buoyant economy, and British buyers are understandably more comfortable about investing in foreign property, said the Overseas Guides Company.
The Overseas Guides Company Quarterly Index measures the number of enquiries via downloads of their country-specific buying guides, such as SpainBuyingGuide.com and PortugalBuyingGuide.com. For Q3 alone there was a 4.1 per cent year-on-year increase in enquiries, although the quarter was down compared to the first two quarters of the year, due to economic uncertainty in the UK in September.
Angelos Koutsoudes, Head of the Overseas Guides Company, points out: “The reason for this drop in enquiries is likely to have been as a result of the Scottish Referendum in September, the month with the lowest amount of enquiries in Q3. Undoubtedly, the uncertainty of the referendum’s outcome caused nervousness in the economy, with ripple effects felt across Europe. Things quickly settled down, so we’re expecting a bounce back in coming months, and are already seeing signs of interest picking up.”
Unsurprisingly, Spain is the most popular country, generating 2,710 enquiries in the third quarter, compared to 2,494 in the third quarter of 2013. Things are really looking up for Spain, both in terms of the property market and the economy as a whole. The International Monetary Fund recently announced that the Southern European countries will lead the rest of the EU in terms of economic growth over the next year – the economy is expected to grow at 1.3% in 2014 and continue by 1.7% in 2015.
Close behind Spain is France, which generated 2,575 enquiries in the third quarter. Not only have house prices across the country remained stable over the last year, with average prices even falling in some areas, but France is also now offering interest-only mortgages to non-French residents.
Alexis Goldberg, a resident of France’s Languedoc and author of the France Buying Guide, comments: “Agents over here are reporting a huge hike in enquiries compared to last year. There is a huge supply of resale character homes in France, with prices still flat so representing great value compared with what you can buy in the UK. I think this year many vendors have had to get realistic about asking prices, which has helped kick-start the market, along with the incredible mortgage deals.”
For more information on buying property successfully in France or Spain, download the Overseas Guides Company’s free France Buying Guide or Spain Buying Guide and start receiving free updates by email.
To see a wide variety of property for sale all over France and Spain, visit Rightmove’s France and Spain property listings.
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