Spain government looking to woo British buyers to its property market

Spain's beauty and climate has always attracted Brits, and now the government is trying to, too

The British and Spanish governments have not agreed on very much lately, but on one issue they appear to stand united – that the Brits are going to buy property in Spain, so they may as well lend a helping hand.

From a British perspective, figures from a property abroad conference hosted in November by the UK Foreign Office revealed that a massive 66 per cent of all enquiries from those in attendance were about property in Spain. In comparison, French property enquiries accounted for just 24 per cent…

In response to this overwhelming interest in property in Spain, the Foreign Office created a rather helpful page on its website explaining the steps required to purchase property in Spain, issuing guidance on the best way to avoid the pitfalls that some Brits have fallen into in the past.

And so on to Spain. The Spanish government has recently come into criticism – notably from the UK’s Daily Mail – for marketing a formal register of empty properties for sale throughout the country that the Mail claims has not been properly vetted in order to weed out those properties that may face demolition orders.

All properties that appear on the register, which is backed by Spain’s government, would appear to have been given the all-clear, assuring buyers that they were built legally and legitimately. However, the Daily Mail has found that some properties listed on the register may in fact be facing demolition orders in the near future.

In response, Spain’s Ambassador to London, Federico Trillo, remarked that the Spanish government is “taking steps to ensure that irregularities in the property market are finally settled,” adding that Spain had introduced a number of reforms and legislation designed to make it easier for Brits and other overseas investors to purchase Spanish property.

In the summer, Trillo told the UK’s Daily Telegraph that the Spanish government would do all it could to improve investor confidence, stating: “There has been a strong reaction by the Spanish government in this area.

“Britons buying overseas properties in Spain is vital for us. The government has sought to clarify the situation, with reforms that have already been introduced and others that are underway, to ensure the legislation protects potential investors and those that already have homes in Spain.”

The expat campaign group AUAN has called on the Spanish government to make it clear on its register those properties where there may be a possibility that it was built illegally, and to also stipulate that where it fails to inform buyers of this, the government will be liable.

Reforms already introduced include the creation of the so-called Golden Visa and new laws on mortgage approvals and lending.

And it appears that these measures have had the desired effect, too. Data from Spain’s Office of National Statistics show that in the third quarter of 2013, foreign buyers were responsible for 12 per cent of all home purchases in Spain, with Brits accounting for 15 per cent of that figure, the French for 11.5 per cent and Russian buyers for 9.35 per cent.

On average, the official government data shows that Spanish house prices are 5.4 per cent cheaper today than they were at this point last year, but price falls have slowed across the board.