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France And Spain Are Still Top Amongst Uk Buyers

News Posted On: 25 April 2012

Brits looking for homes abroad still favour France and Spain above all other locations, according to latest research from Rightmove Overseas. The company found 21.01% of searches for foreign property were for Spain, with France accounting for 17.91% of searches, and the US coming in third with 12.06% of searches.

There's been an increase in searches for traditional locations in Spain such as Villamartin and Benidorm, as British people tend to choose destinations in areas they like to holiday in. In France, Brittany has seen an increase in interest.

It's hardly surprising more people are interested in buying, as mid-April saw sterling hit a 19 month high, and it was worth €1.217 against the pound. The last time sterling was so strong was in September 2010. However people buying property in the Balearics may need to get a move on, as the Property Transfer Tax (ITP) will increase from 1 May.

The Eurozone debt crisis is still a problem, and Spain is still one of the countries’ most at risk which is resulting in its government putting pressure on autonomous regions to help reduce their deficit.

The new ITP payment structure was only announced at the end of March, and means property costing more than €300,000 will be taxed at 7%, with the next €200,000 being taxed at 8%. The €200,000 after this will be taxed at 9%, and properties costing in excess of €700,000 will be taxed at 10%. This is quite an increase as previously the property tax had been a flat 7% across-the-board.

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