France Still No1 For Brits Buying Abroad
News Posted On: 19 September 2011
But Spain in defiant comeback, accounting for one in three enquiries
Portugal pips Turkey to the post for third place.
France still reigns supreme when it comes to Brits buying abroad, according to the latest overseas property ‘hot spots’ report compiled by Conti, the overseas mortgage specialist. The country is top of the list for the third year running, with an impressive 39 per cent share of mortgage enquiries received by the company this year.
In a defiant comeback, however, is Spain. In second place, it accounts for almost a third (31 per cent) of enquiries received, up by seven per cent on last year, and by nine per cent since 2009, proving that our love affair with this country is far from over. Conversely, enquiries about French mortgages are down by four per cent on last year.
Portugal, accounting for 12 per cent of enquiries, has swooped into third position for the first time, enjoying a five per cent increase on last year. A surge of enquiries during August meant that it pipped Turkey, which has taken third place for the last three years, to the post. Interest in property in Turkey has declined slightly as it claimed 11 per cent of enquiries compared with 18 per cent last year.
Top Ten Hot Spot Destinations
|
Country
|
% of enq's 2011
|
Rank 2011
|
% of enq's
2010
|
Rank 2010
|
% of enq's 2009
|
Rank 2009
|
|
France
|
39%
|
1
|
43%
|
1
|
31%
|
1
|
|
Spain
|
31%
|
2
|
24%
|
2
|
22%
|
2
|
|
Portugal
|
12%
|
3
|
7%
|
4
|
7%
|
4
|
|
Turkey
|
11%
|
4
|
18%
|
3
|
13%
|
3
|
|
Australia
|
2%
|
5=
|
0.5%
|
7=
|
1%
|
0
|
|
Italy
|
2%
|
5=
|
1%
|
6
|
6%
|
5
|
|
USA
|
1%
|
7=
|
5%
|
5
|
1%
|
7=
|
|
Canada
|
1%
|
7=
|
0
|
0
|
0%
|
7=
|
|
New Zealand
|
0.5%
|
9
|
0.5%
|
7=
|
0%
|
0
|
|
Ireland
|
0.5%
|
10
|
0.5%
|
7=
|
1%
|
7=
|
Source: enquiries received by Conti so far in 2011 compared with same period in 2010 and 2009
Clare Nessling, Conti’s Operations Director, says:
“There’s no doubt that France offers the full package for British buyers – easy access, competitive prices, good rental returns and a stable property market. It also offers the most finance options and best available rates in Europe, and it’s this vital combination of factors which are making it so popular. But Spain is definitely making a comeback, experiencing a particularly busy August. This could be due to the holiday season coming to a close, with trips to Spain this summer inspiring many of us to buy our own place in the sun.”
Investing in la belle vie
Conti says that France is a long-time hot spot for Britons looking to invest in overseas property. Accessible, safe and familiar, it offers everything today’s buyer is looking for, including a defiantly dynamic property market. Its mortgage market is also very stable, largely due to the cautious approach adopted by its financial institutions in the past. The country is extremely attractive to prospective investors, thanks to historically low interest rates and attractive property prices, so they’re very well placed to pick up a bargain.
Viva Espana
Investors looking for a bargain in Spain are in a strong position. Dramatically reduced prices and the opportunity to negotiate these down even further with some very motivated sellers mean that it’s most certainly a buyers’ market. Mortgage availability is generally good, despite the negative headlines about the Spanish property market. Mortgage providers still have a healthy appetite for lending, with maximum loan to values still around 65-70 per cent. Generally speaking, smaller deposits are possible in areas where house prices are more resilient, such as the Balearics, the Canary Islands, Madrid and Barcelona.
Portugal becoming more popular
The gloom hanging over Portugal’s economy doesn’t seem to have deterred British buyers, who are keen to pick up a bargain. The country may be struggling with debt and stuck with the label
of one of Europe’s so-called PIGS, but it has managed to escape the type of property crash experienced by Spain, due to its tighter lending conditions and stricter planning laws which have helped to prevent over-development. Lending is more restricted but this should continue to improve.
Overseas Mortgages
Conti is the UK's leading overseas mortgage specialist, providing finance for purchasing holiday homes, investment and retirement properties in more than 45 countries. All mortgage applications are processed and underwritten by Conti’s teams of specialists, who know the exact requirements for each overseas lender. It can also ensure that clients are put in touch with specialists in the country in question, to enable them to comply fully with planning and legal conditions and assist with currency exchange.
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