Brits drawn back into overseas property market

Clare-Nessling

The number of enquiries received by overseas mortgage firm Conti in the second quarter of this year increased by 38% when compared with the same period in 2013. And over the period of January to June 2014, enquiries shot up by 58% compared with the first half of last year.

Spain continues to be top choice, accounting for a 59% of total enquiries received in the second quarter, continuing the pattern Conti saw emerging in the first quarter. France, in second place, accounts for 27% of enquiries, followed by Portugal with 8%.

The current strength of sterling is also having a very positive effect on budgets, with the pound rising to a 22-month high of €1.26.

Only last summer the value of sterling was around €1.14. It means that for someone considering a home in the eurozone worth €200,000, the property now costs £158,730 compared with £175,439 at the start of August 2013. That’s a saving of £16,709.

Clare Nessling (pictured), director at Conti, said: “Prices are good, rates are low and lending conditions are improving, so it’s perhaps no surprise that buyers are returning to the market.

“What has exacerbated the situation is the concurrent performance of the UK economy where the pound has been strengthening against other currencies including the euro, and this is also having a big influence on buyers’ enthusiasm.”

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