Brexit effect - latest update on market effect
Updated Brexit Report - February 2018 Update
February 2018 - As Brexit negotiations become more advanced and more confusing a trend has been seen in the opening weeks of 2018 - that is showing the majority of potential purchasers from the UK, are now ready to move into the market rather than wait any longer.
Challenges to the actual structure, government in fighting and the clear message from the remaining EU countries regaridng their position seem to demonstrate that no long term effect will be forced onto the Spanish property market nor an inability for buyers to benefit from general health care or other benefits enjoyed by free movement and reciprocal arrangements since the UK's entry into the EU years ago.
Uk based buyers are now returning to the market and seem keen to be able to secure a property that gives them rights moving forward beyong the current ''April 2019'' deadline.
This has been most clearly seen in the increase in UK buyer activity in the opening two months of 2018.
Brexit Report - December 2017 Update
Last month we reported on the various positive messages that have come from the UK and Spain regarding their future "post-Brexit" relationship. - Continue below for full November report
After 18 months of talks, the government has finally achieved assurances for UK nationals living in the EU while also guaranteeing the rights of EU residents in the UK. This was expected all along and comes as no real surprise but nevertheless, it has provided peace of mind to those looking to purchase a property in Spain and those who are already living here.
The peace of mind that is now provided to potential purchasers is expected to see many more UK Buyers return to the market place - safe in the knowledge that they can invest, and more to the point those who have not already done so can now know that providing they beat the April 2019 deadline they can now move forward with their holiday home, or in many cases future retirement purchase of a 2nd home in the Sun.
Comment has been made by McGill and Co Solicitors, Edinburgh (www.mcgilland co.co.uk) on the 21st of December, 2017 as follows:
''In what has been referred to as a significant 'breakthrough' by the European Commission president, the UK and the EU have now finalised the first stage of Brexit negotiations. On 08 December 2017 the parties reached an agreement on the three key issues at the core of Brexit, one of which is the rights to be afforded to EU citizens in the UK after Brexit''
Along with further confirmation in a statement made by Teresa May, when she expressed her commitment to ensuring the U.K. continues as a “close friend" after its withdrawal from the EU. She said she made “no secret of wanting to get onto the next phase and to approach it with imagination and creativity," according to prepared remarks shared with journalists. ''I believe this is in the best interests of the U.K. and the EU," she added. “A particular priority should be agreement on the implementation period so we can bring greater certainty for business in the U.K. and across the 27."
Blevins Franks, Tax advisers also served notice on those considering an overseas purchase by commenting:
Living in the UK and considering moving to another EU country? The joint statement serves as a call to action to accelerate your plans so that you can become a permanent resident in your country of choice ahead of the withdrawal date in March 2019.
In summary the early part of 2018 may well see an advance of UK buyers, that could well turn into a rush by the Autumn 2018 buying season as the deadline approaches for thos looking for total security from future 2nd home ownership in The EU zone, and particularly in Spain which is and has always been the most popular for UK purchasers.
ECAS summarises the deal saying that "The rights of EU citizens in the UK – and UK citizens in the EU – to live, work and study will remain the same, and they will retain the right to family reunification, healthcare and social security."
With property sales already on the rise, we expect that demand will increase further with this reassuring news.
Brexit Report - November 2017
Nearly 18 months after the historic referendum vote in the UK to leave the EU, it remains the number one news topic for many Brits - the upcoming Royal wedding aside!
The change in the exchange rate and initial uncertainty in the months after the vote had a clear impact on British buyers in the Spanish property market. Since then, while negotiations move as slowly as expected, the market has recovered, in part due to assurances from Spain regarding future relations between the two countries.
It is clear that for those looking for a second home in Europe that Spain is the best option, even more so than before. Spain and the UK enjoy a mutually beneficial relationship that must be preserved in the interest of both countries.
Recently, the Spanish foreign minister Alfonso Dastis made the clearest statement regarding the future of Spain and Britains´s relationship saying that his government would ensure that the lives of ordinary Britons in Spain are "not disrupted" in the event of a "no deal" Brexit. He went on to say that "Over 17 million Brits come to Spain every year and many of them live here or retire here and we want to keep it that way as much as possible."
Earlier in the year, at a meeting between King Felipe of Spain and PM Theresa May, the Spanish King was quoted as saying that “It is extremely important that the future framework of our relations establishes the conditions for a close economic relationship trying to minimise future obstacles and barriers". His comments were supported by the foreign minister who also expressed a desire to continue the excellent relationship between the two states.
These comments are unsurprising given the fact that bilateral trade between the two countries was worth 40 billion pounds ($51.68 billion) in 2015 and more than 400 Spanish companies are registered in Britain.
There are more than 300,000 Brits officially registered as Spanish residents and many more enjoy living in Spain in a non-permanent manner. There are also more than 130,000 Spanish citizens living and working in the UK. It is clear that there is much to preserve. Spain depends heavily on tourism from the UK and foreign investment in the property market with UK buyers right at the top of that list. There is no reason to believe that Brexit should get in the way of that positive relationship.
PM Theresa May also commented that “we have made it a priority in the negotiations to guarantee the status of Spanish and other EU citizens living in the UK as part of a reciprocal deal".
The Spanish property market continues to thrive with the support of foreign buyers including British ex-pats. Official Notary reports show an increase of 8.6 percent in September 2017 from the previous year. Prices increased by an average of 2.4 percent.
The most popular areas continue to be the Capital Madrid and costal areas with The Costa Blanca remaining one of the most popular areas in Spain year after year.