Not content with a house price boom of their own, thousands of Britons each year are taking advantage of rising property prices in the UK to fuel a property boom in Europe according to research conducted by Barclays.
In 2003 alone, 40 per cent of all dwellings built on the Spanish Costas were bought by the British and of those 63 per cent were bought for holidays or retirement*, helping increase prices on the Spanish Costas and in the Balearic islands by 21 per cent year on year – this is triple traditional house price growth of around six to seven per cent**.
A similar story is seen in France where in the past 12 months second home hot spots have seen property prices increase significantly, for example by up to 28 per cent in Languedoc Roussillon, which is almost triple the national average house price inflation in 2003 (11.3 per cent).
Barclays puts the growth of property prices down to a number of factors:
Equity release has reached record levels in the UK in 2003 at around £57bn due to the rapid growth in UK property prices. Much of this has been used to buy cheaper European property outright. The cost of an average house in France is €124,000 (circa £81,000) and in Costal Spain €130,000 (circa £87,000).
Low cost airlines are flying to more and more destinations and fierce competition is keeping the costs down as mainstream airlines offer competitive deals alongside low cost carriers.
Interest rates in Europe are also at historically low levels and even cheaper than in the UK – this means mortgages in France and Spain have never been better value.
To make property buying and settling in France easier for Britons, Barclays today announces the launch of FranceSolutions – a new package combing a wide range of assistance and banking services. Barclays is also taking the opportunity to expand its branch network on the Spanish Costas and in the Canary and Balearic islands with 17 new outlets specifically dedicated to the foreign market. This brings Barclays network in Spain with English speaking advisers to over 50 branches. It is also launching a dedicated banking service for foreigners in Spain, called Destination Spain, that brings together current accounts, mortgages, debit cards and bilingual staff.
David Roberts, CEO for Barclays Private Clients and International says: “The current housing boom in the UK has given people access to huge chunks of equity from their homes bringing a second home in Europe, where house prices are cheaper, within the reach of record numbers of British people. When you add into the equation cheaper airfares to more destinations, and the lowest European interest rates in a generation, it is easy to see how cash rich Britons are driving up property prices.
“At Barclays we recognise that buying a property in another country can be confusing and people look for reassurance from a trusted name and we now have more services than ever before to help British people buy their own piece of Europe.”
For further information please contact:
Perry Jones/Andrew McDougall
Barclays Press Office
+44 207 699 4077/3534
Email: perry.jones@barclays.co.uk
Notes to editors:
Destination France offers further solutions to Brits heading to France
Barclays France announces the launch of a new service as an enhancement to its Destination France offering. FranceSolutions is a new package that is designed specifically to accompany the client through living and/or owning property in France. Key features of FranceSolutions include:
Current account in euros or multi-currencies, full transactional on-line banking and a Gold Mastercard debit card
Free euro money transfers with the Economic monetary zone (including the UK)
Access to English speaking advisers 24 hours a day, seven days a week who can provide legal and administrative advice, as well as translation services
Access to emergency services covering insurance, rescue and repatriation, loss and theft of keys and documents
Advice and information on everything from schools and the health system to taxation and property purchase.
Destination Banking arrives in Spain as Barclays expands Branch network
Last year Barclays launched Destination France, a service specifically designed to assist the growing market of Expats, and due to the popularity of Destination France Barclays has recently launched the service in Spain. Destination Spain now makes it easier for Brits to buy on the popular Spanish Costas and in the Canary and Balearic islands.
Like its predecessor, Destination Spain brings together current accounts, mortgages, debit cards and bilingual staff, to make life easier for those moving to, or buying a holiday home in Spain.
-
*British Embassy data
-
** Average figure of house price growth relates to period between 1992 and 1998. Source Bank of Spain and SCH.
-
France – Property price inflation in 2003 for existing houses (source FNAIM and Barclays France)
-
Spain – Property Price Inflation (source Aguirre Newman and Barclays Spain).
Equity release figures sourced from Bank of England 2004
Popular Destinations and House Price Inflation For:
-
Barclays offers a wide range of mortgage for in France and Spain. For example: Barclays in France offers a 15 year variable rate mortgage with a current all inclusive rate of 3.50 per cent in the first year. In Spain, Barclays offers a market leading deal of euribor plus 0.75 per cent (current rate of 3.24 per cent).
-
Rates quoted on French mortgage products as of 1st July, 2004, subject to modification and on the acceptance by the bank. The rate is revised annually on the anniversary date, at the 12-month euribor (European Interbank) rate plus 60 basis points in the case of a regular source of revenue in France otherwise plus 125 basis points for other variable rate mortgages. The 3.50 % quoted takes into account the French regulations on displaying all mortgage rates in TEG (Taux effectif global, fixed annually), which includes fees and insurance.
-
Free money transfers up to a maximum of €12 500. Full details of the beneficiary’s account must be provided.
-
Subscription to FranceSolutions is at €50 per quarter and includes a gold MasterCard debit card and FranceSolutions assistance. The rate for any additional gold MasterCard is only €70 (half the standard additional charge) and the annual charge for any additional FranceSolutions assistance is €20 -also half the standard rate.
-
For further information on “FranceSolutions” and Destination France, people can visit the International Clients Services pages on www.barclays.fr or telephone free 0800 917 01 57 from the UK or 0810 06 06 60 from France (local rates apply)
Destination Spain Customer Benefits:
For further information on Destination Spain people can visit our website www.mortgagefornonresidents.barclays.es/ or call Barclays Spain on 901 10 16 10 if you are calling from Spain or on 00 34 91 336 16 10 if you are calling from the UK
