You are here: Home - Uncategorized -

Brits on the rack as the Spanish eye a possible property crash

Written by:

A sell-off of real estate stocks in Spain has fuelled fears of a property crash amongst the huge ex-pat British community in the country.

The share prices of leading Spanish property companies have fallen by up to 66% in the past week, with investors worried that the debt taken on by some developers is too heavy for comfort and could cause them credit problems.

There are also over-supply fears as construction is expected to begin on 800,000 homes this year, following 600,000 last year. Research by Datamonitor says that 250,000 homes in Spain are owned by Britons.

The average purchase price of a Spanish property is 300,000 euros in the best areas on the costas and the islands, while it comes in at around 150,000 euros elsewhere.

Builder Brian Ball, originally from Essex, has just completed constructing a villa near Almeria in Andalucia. “I am not worried about any possible crash as I have funded the villa from my own pocket and don’t have money owing on anything there.

“But I do know a lot of people mortgaged up to the hilt on their Spanish property and if the value were to crash then they’d be in a lot of bother.”

Related Posts


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Lloyds TSB offers bank account for those in Poles’ position

High Street bank Lloyds TSB is launching a UK current account aimed at the tens of thousands of Poles who...