Investment Builds Confidence in Spanish Property Sector

The sub-prime credit crunch in the US has entered a new cycle and the recent announcement of the closure of nearly half of the estate agents based in Spain continues to dampen enthusiasm for overseas investment. This has not deterred Spanish developer and construction company Noriega's decision to invest €90 million into the Realia Group in a bid to instil confidence, in what is perceived by buyers as a flagging market.

The investment represents a 5% buy into the Realia Group. The venture, under the guidance of Noriega’s parent company, the Sanchez Ramade Group, demonstrates not only faith in the market but also its belief in the long-term future in the building sector in Spain.

The Realia Group was formed in 2000 as a result of the merger of the developer division of FCC and Caja Madrid, and is one of the leading development groups in Spain specialising in promoting, and managing a wide range of properties in Spain, France, Portugal and Poland.

The deal brokered through International investment Bank, Goldman Sachs, and International lawyers, Freshfields Bruckhaus Deringer, follows a €425 million investment by the Sanchez-Ramade Group in Spanish energy giant Iberdrola.

Eugenio Sanchez-Ramade Garcia-Conde, Managing Director of Noriega UK, commented on the investment. “Noriega and Realia share market sector but complement each other with different sections of the market. The Spanish property market offers many opportunities for investment for the buyer looking to purchase a second home. Improved infrastructure and transportation added to fantastic air links along with the weather make Spain an ideal choice for property investment. Spain is now a mature market, so I am certain the recent turbulence in the property sector will stabilise and confidence will return.”

There is no denying a slow down in the Spanish property sector, which when you consider the astounding growth over the past decade and a half is not surprising, but the fact is that properties in Spain still recorded growth in 2007. Property prices continue to rise above the standard headline rate of inflation in Spain, which is admittedly higher than other parts of Europe and the UK.

What is missing from the current climate and some may say from the media in general, (though things are starting to improve with the media) is a more combative approach from developers, and a sustained and level-headed response to the situation. Everyone knows bad news sells and it does not take many bad news stories to start undermining confidence in anything, let alone a property sector that is exposed to a variety of factors that can affect the market.

Noriega’s UK director, Eugenio Sanchez-Ramade Garcia-Conde sees its investment in Realia as just one component to begin challenging the perception of hard times ahead for the Spanish property sector. “It is difficult for developers and constructors to work in isolation. There have been calls for a more unified approach from with our industry to start addressing issues concerning planning and the property market in general. We cannot ignore the fact that 2008 will be a challenging year for the property market in Spain and the holiday and second home market in particular, but there are many positive factors that we should concentrate on. Spain continues to be the number one destination for UK buyers when looking at a home in Spain and it will be for a considerable time. The close proximity, the favourable climate, improved infrastructure and transport, and the friendly Spanish people make Spain an ideal choice. I cannot see these factors changing.”

If the road ahead is a little uncertain one thing for sure is that Spain will not be in isolation to any perceived (or otherwise) market forces, all countries selling holiday homes or second homes will be affected.

Written by

Darren Laws, a freelance writer that has contributed articles on Spain to many publications.

Youth Settling in Spain

Spain was once a place where northern Europeans, averagely around 50 years old, would buy a second home for retirement, holidays and weekends. This label is changing as a different generation is approaching, a generation where a plane flight to Spain is less than a night out in London and a generation (especially from the U.K) where people cannot get their foot on the property ladder.

There are approximately one million people from the UK living in Spain. In recent years, things have changed; properties are no longer being sold only to retired Britons who fancy playing golf in the sun. Increasingly younger people are moving abroad to live permanently. This is due to a new found freedom of travel and residency within the countries of the EU. Also many Britons living in Spain do not figure in official statistics, this normally occurs because they spend most of the year abroad, but are still registered (by choice) in the UK for tax and social security.

Most young people come to work. Others, however, take advantage of cheap flights and commute back to the UK. Not only are there many English Language Schools around the Costa del Sol but increasingly there are now 14 English-language schools on the Costa Blanca, with brings a high demand for Native English people to teach there.

The work that young people can get in Spain varies. For somebody without a degree, there is plenty of bar and restaurant work along the south coasts. These include hotels and hospitality. In some English areas there is pretty much any type of skilled work from hairdressing to plumbing. Professionals could go to the coast or to any of the major cities such as, Madrid, Barcelona and Valencia. There are many job sites in English for English people in Spain and these days the diversity of positions is equivalent to that of the UK market.

Another reason for younger Britons to move to Spain is if their parents are already living there, which includes close friends and family.

A YouGov survey of more than 4,600 people aged between 18 and 29 found that nearly half (47 per cent) were planning to buy a home abroad. Research has found that two thirds of investors were buying property for the first time, in the comparatively cheaper housing markets in Spain, France, the US and Italy. The research established that 57 per cent of people purchased a property abroad to flee from the British weather, while 41 per cent were tempted by the lower cost of living overseas.

When you speak English and perhaps a second language, doors fly open wherever you are in the world and these doors have money behind them, so the next question remains, why struggle in cold weather to have the basics, when you can sit under the sun, sipping freshly squeezed orange juice in your own home.

Written by Belinda Milestone who works as a content writer for OPP (Off Plan Properties)

Economy not Deterring Overseas Buyers

Turbulence in the global economy is not putting Britons off buying foreign properties, according to new research. Figures from the Association of International Property Professionals (AIPP) found that the number of overseas transactions went up by 21 per cent to 240,000 last year.

Many of these purchases were said to have been in established European locations, including France, Portugal and Italy. However, Spain was named as people's favourite location, as it attracted more than a quarter of those who bought a foreign property in 2007.

Paul Owen, chief executive of AIPP, told Country Life that this finding could prove to be a surprise to some industry analysts. He commented: "There has been some negative media coverage about the Spanish property market." Despite this, the country has been rated highly in recent polls including a survey by A Place in the Sun magazine. Research by the magazine found that it was Britons' favourite foreign property market for the second consecutive year.

Story from Property Showrooms

Free Polaris World Inspection Trips

Polaris World have recently launched some free inspection trips for potential customers wishing to view their developments. The trips offerred include: free return flights to Murcia; free 4 star accommodation; and even free meals. The flights typically leave the UK early Saturday morning, and return late on Sunday.

The time in spain is spent viewing the different Polaris World Golf Resorts, including their on-site facilities and the different property types available. Prices range from 83,000 Euros for a Golf Suite to some 1,500,000 Euros for a five bed five bath villa.

There are various European departure points during March and April, including London, Liverpool, Belfast, Amsterdam and Oslo.

Spaces, not surprisingly, are limited. So, if you are interested in this offer, please get in touch with us, and we will reserve your seats for you, to avoid disappointment.

Murcia Growth

Unlike other areas of Spain the Murcia region experienced a seven per cent growth during the last quarter of 2007.

Those looking for a property on the costas, without paying premium prices, should head for the Costa Calida in Murcia.

Resorts such as Mazarrón are still fairly untouched by mass tourism, and property here can still be snapped up at reasonable prices.

Investors need to hurry though, as it is is quickly catching up with the other costas.

A lot of money has been put into attracting tourists to the area, and a new marina opened in Puerto de Mazarrón last year. There are also a wealth of new shops, restaurants and café bars opening in the resort, which are due to be ready for the summer season.

There are a range of properties in the area, from resales to off-plan homes on new developments. It is still possible to buy a two-bedroom apartment on a complex, with a sea view, for €200,000, and one-bedroom apartments at the Polaris World Golf development, which is home to three Jack Nicklaus-designed courses, and 20 minutes from the beach, start from €90,000.

Good deals and flexible payment plans from builders and developers, ensure the off-plan market Mazarrón is still strong.

As well as the new marina the Town Hall has introduced another incentive to attract foreign visitors – a translation system. British residents and visitors can now get linguistic assistance by use of a headset. The system uses a mobile phone and two sets of headphones and can provide a simultaneous translation in either English, French, German or Arabic.

This is a pilot scheme in the region and it should also be available in Puerto de Mazarrón in the near future.

Around 46 per cent of the population in Mazarrón are non-Spaniards, so the new service is geared towards residents who speak little or no Spanish.

Full story from homesworldwide.co.uk

Cajamurcia Branch in London

Cajamurcia, one of Spain's regional savings banks, has begun operating in the United Kingdom, with the opening of a subsidiary branch in the centre of London.

One of its main objectives is to help British customers with their spanish banking transactions in the United Kingdom and take part in the growing commercial exchange between the two countries, bringing Spanish developers closer to the British buyers’ market.

The Cajamurcia Subsidiary Branch in London can carry out all the usual banking transactions, thanks to its real-time connection with the Cajamurcia servers. This means you can open accounts in Cajamurcia branches in Spain, request cards or use the Intelvía service, amongst others.

The branch also offers meeting rooms, security boxes and teller service for customers, as well as an exclusive ATM for Maestro cards in the Red 6000 network.

The branches contact details are as follows:

Cajamurcia - London Representative Office
16 Waterloo Place
London SW1Y 4AR
Tfno. +44(0)2079251194
email: jyelo@cajamurcia.es

Murcia - Inland More Popular Than The Coast

When property in Murcia is mentioned, large urbanisations and new build golf resorts located along the Mediterranean coastline spring to mind. According to Kyero.com, however, these homes are not what the majority of today’s buyers are looking for.

The latest independent statistics from Kyero.com reveal that 8 out of 10 of the most popular towns in the Murcia province are in fact not coastal at all, but inland. These towns are currently experiencing a renaissance and property prices are booming.

One example is the town of Moratalla, 120km inland, where figures show that the average property price increased by 50%, from €82,250 in 2006, to €124,000 in 2007. Other examples are the scenic town of Jumilla in the north of the Murcia province, where a 25% increase, from €139,000 in 2006, to €173,000 in 2007, was recorded, and Puerto Lumbreras in the south west, where average property prices increased by 17%, rising from €233,250 to €245,250.

Set against the province average of a 4% increase in property prices, from €204,250 (2006) to €211,250 (2007) and the Spanish national average, which actually declined by 0.1%, from €245,750 (2006) to €245,500 (2007), this is highly significant.

This data suggests that most Britons looking for a holiday home or to relocate to the Murcia region are increasingly seeking rural areas above developed coastal towns. Space is becoming a key consideration and properties are frequently being sought near to the national parks of the region.

One example is Lorca, which takes the third spot in the Kyero.com Top Ten, situated near to the Parque Natural Sierra Espuna. Here villas on 5 acre plots meet the demands of those looking for a seriously low-rise property option where space is paramount. Not only is it less than 20 minutes from the coast, and within easy reach of 3 airports, but property in Lorca also offers excellent value for money.

Another key reason that the British buy in Lorca, or Murcia in general, is that they want to experience the true Spanish way of life. Lorca has around 100,000 inhabitants and is a fun and lively town with loads of bars and restaurants, a castle, theatres, schools, squares to relax in, enjoy a coffee and watch the world go by, friendly people and beautiful architecture with 15 churches and a cathedral in the centre. When you set this alongside the fact that Lorca literally means City of the Sun, having one of the best climates in Europe, it is not hard to see why it is so popular.

New Low-Calorie Costa Calida Wine

A vineyard in Jumilla, Murcia has come up with what it is calling ‘vino light’. Altos de la Ermita has 6.5 degrees of alcohol, half the normal amount for traditional wine, and has, as a consequence, fewer calories. The 2006 Crianza is made from Monastrell, Tempranillo and Verdot grapes, and the vine is starved of water for several hours a day when the grapes are maturing to get the lower alcohol content.

The new light wine is the result of research help from Murcia and Cartagena University and the Technological Development Centre. € 2.5 million has been invested in the project, and the first bottles go on sale in April. How well the 770,000 bottles sell will be key to the future of the project.

The price of the wine at the vineyard will be €6, but specialist wineries are expected to charge €10 and restaurants between 14 and 20 Euros.

Record Number of Tourists in Spain

Spain is still a massive draw for holidaymakers, with statistics showing higher tourism levels than ever.

Spain’s tourist board are celebrating a successful year after figures have revealed record numbers of foreigners visiting the country’s holiday hotspots last year.

During 2007, 59.2 million overseas visitors descended on cities and coastal resorts, 1.7 per cent more than 2006, with the Industrial, Tourism and Trade Ministry reporting that Andalusia was among the most popular destinations, especially areas along the Costa de Sol.

The main market is still the UK, with Britain accounting for 27.5 per cent of all foreign visitors, though Spain is also becoming increasingly popular with North American visitors, with the number of arrivals from the United States rising from 22 per cent to 1.1 million.

Britain’s passion for Spain’s holiday and property market is partly due the abundance of low cost airlines linking the two countries, making trips to Spain easy and affordable. Low cost airlines are credited with carrying 24 million passengers to Spain over the past year, an increase of 34 per cent from 2006. Ryanair are the overall leaders with 5.4 million passengers, followed by Easyjet with 4.2 million.

Málaga was the principal entry point for the 3.6 million low cost travellers who arrived in Andalucia last year, with six out of every ten tourists reaching the Costa del Sol via low cost airlines.

Full story from homesworldwide.co.uk

Murcia On The Rise

The latest statistics from the Ministry of Tourism and Commerce show that:

(1) passenger traffic is up 23 per cent at San Javier airport;

(2) cruise traffic is up 20 per cent at Cartagena port;

(3) overall tourist spending is up by 30 per cent; and

(4) Murcia has been the third most popular location for British property buyers – behind Alicante and Malaga.

Property prices in the region of Murcia are still some 15 per cent below the national average.

Crack down on under-declared property sales

There has been talk of a new crack down on under-declared property sales in Spain.

Q: What procedures and evidence do buyers need to follow / produce when purchasing a property to ensure they are not under-declaring? What are the possible penalties if found guilty of undeclaring?

A: Since the late eighties and during the nineties, under declaration on the purchase price in the Title Deeds has been an unfortunate, and endemic, practice in Spain. When the Euro was going to come into force in 2001, a massive exchange of B monies was produced for obvious reasons: the peseta was going to disappear. It would be naive to say that under declaration does not exist anymore, but because of the incorporation of the Euro as a new currency and due to the strict attitude of the Inland Revenue (Hacienda Publica) and the Public Prosecution Department (Ministerio Fiscal), this is a practice which appears to have been virtually abandoned. In fact, it is difficult to find this practice if you are buying from a well-known, reputable developer.

Buyers must ensure that every payment is made / transferred from their account to the seller's account. The balance of the purchase price should also be made by means of a Bank Transfer or handing over a cheque or bankers draft on completion at the notary's office. You should never make cash payments or payments which have not been documented prior to completion of your purchase. You should also ask - and this should be agreed in your contract - whether the full price is declared in your title deeds; otherwise you should pull out of the deal.

When you attend completion before the Spanish Notary, make sure all monies you have paid are declared in the title deeds and check that the price that appears in the deeds is the price agreed and paid by you. If you notice that the price to be declared is less than the one you have agreed and paid, you should mention this to the Notary and refuse to sign the title deeds unless the full price is declared. Nowadays, under declaration may not only lead to a penalty with surcharges and interest from the Inland Revenue, but in some cases, it may lead to imprisonment.

Story from www.opp.org.uk

Top 20 Buying Destinations

According to a recent survey by A Place in the Sun magazine, despite a raft of emerging markets and USA property prices down 30% on a year ago and a dollar weakened by 25%, it’s the traditional sun-seeker’s favourite, Spain, that takes the number one spot for the second year running.

The poll, conducted at the recent A Place in the Sun Live exhibition at the NEC Birmingham, the world’s largest overseas property event of its type, also saw France with its enviable lifestyle maintaining its 2006 second place and Turkey climbing into third position on the back of a wide range of developments marketing in the UK offering great value and year-round sunshine.

Other key trends highlighted include the USA’s leaping six places into fourth position as UK investors take advantage of a buyer’s market and two dollars to the pound, Italy moves up three spots into the top five (as Calabria becomes ever more prominent) and the meteoric rise of Canada – the biggest climber – up seven places to number nine.

Seven of the top ten destinations are European, with Cyprus (6) and Greece (7) performing consistently on the wish lists of UK residents looking for a home abroad, but Egypt is up three places and bubbling under (at 11) and threatening to break through alongside its North African counterpart Cape Verde (10).

Another interesting mover is Australia, which jumps from 20 to 15 as more UK residents than ever make a permanent move overseas (389,000 last year according to the Office of National Statistics) – as witnessed by the success of The Emigration Show at A Place in the Sun Live.

Says Richard Way, Editor of A Place in the Sun magazine: “What’s really interesting about our annual Top 20 survey is that it shows UK buyers as traditional in one respect – in favouring Spain and France – but also willing to seek out new hot spots and investment opportunities elsewhere: across Europe, North Africa, North America, Asia and the Middle East. When looking for a second home or a new life in the sun it seems that Spain’s mix of great weather, rich culture and beautiful coastline is keeping the country at the number one spot, but buyers aren’t afraid to consider Germany, Montenegro, Morocco, Las Vegas, Thailand or Dubai.”

Story from A Place in The Sun

Hacienda del Alamo - International Golf Resort of the Year 2007

Hacienda del Alamo, a luxurious Golf Resort in the Murcia region of Spain, won the "International Golf Resort of the Year 2007" award in Dublin on Tuesday November 27th. The Commercial Director of Hacienda del Alamo, Rafael Ruiz, was there to accept the award from Suzanne Coyne, presenter of "Golf Ireland", a programme on Irish television channel TV3. The Resorts Agents Manager, Aisling Brew, and Communications Director, Chris Mann, were also present. The award itself was a spectacular piece of Waterford Crystal.

Rural land prices continue to rise sharply

Rural land prices in some parts of Spain continue to appreciate at the same rate as last year, reports the Spanish daily ‘ABC’. According to the article experts agree that rural land near to big cities or in areas with good tourism potential is still an excellent investment. The price per hectare for rural land has increased by 30% per year for the last 2 years, but only in areas with the right climate and other conditions suitable for recreation. Though recreational buyers have been driving the market for attractive rural land, 2 other factors are now adding to demand for rural property in Spain: solar energy farms, and cereal farms for biodiesel fuel.

Spain's Property Market Clean-Up

The Spanish government is getting tough on real-estate corruption, with more than 100 investigations opened into suspect public officials and developers just six months after special police units were set up to fight corruption in the sector. So far the civil guard has arrested 57 people and charged 126 others.

The investigations are tackling a huge volume of corruption that erupted during the ten-year property boom, especially in Andalucia, where British investors have been victims of many of the building scams.

The majority of the culprits are town halls officials who accepted bribes from construction companies in order to push through building permits or break zoning laws, allowing properties to be build on beaches and on protected green areas.

The Spanish government has already begun clearing the Spanish costas of illegal buildings, which the Ley de Costas planning law stipulates have to be 106 metres from the waterline. The Ministry for the Environment has demolished more than 660 homes and hotels built too close to the shoreline this year.

The civil guard units are also working to set up a registry of all illegally built properties across the country. This will help to discourage government officials from accepting bribes in future, and developers from offering, all of which makes the Spanish property market a much safer place to invest.

Full story from homesworldwide.co.uk

New Spanish Homes to include Solar Panels

Solar panels are now compulsory on all new and renovated buildings in Spain, as part of the country's efforts to bring its building rules up to date and to curb the growing demand for energy. New homes will have to be equipped with sufficient solar panels to provide between 30 and 70% of their hot water requirements, depending on where the building is located and on its expected water usage.

Spanish Succession Tax Update (October 2007)

Many readers own property in Spain representing a significant part of their life’s worth. Have you considered how much this will be taxed when you pass away? Spanish succession tax (SST) can be as high as 34%, and in some extreme cases it can be almost 82%! If you thought inheritance tax in the UK at 40% was bad enough, SST can be staggering too.

The tax will be paid by your beneficiaries, such as your spouse, children or grandchildren. The rules vary from Region to Region, although the less generous State rules will often apply by default, and a typical exemption on an inheritance might only be about Є16,000 (say £10,800) per beneficiary, with any amount above this liable to SST. This figure is much lower than the UK tax-free allowance of currently £300,000. The low tax-free amount means that virtually everyone who inherits in Spain is liable to SST under the State rules.

It is complex. SST is payable when the inheritor or recipient is resident in Spain, or the assets gifted or inherited, are Spanish. This means that if your beneficiaries live in Spain they will usually be liable to SST. If they live elsewhere, they will be liable if the asset being passed on is Spanish.

Unlike in the UK where IHT is paid by the deceased’s estate before it is distributed, in Spain each beneficiary pays SST on the value they have individually inherited or been gifted.

There are deductions available according to the closeness in relationship, and other exemptions and tax rates that vary according to the wealth of the donor and/or the recipient, and the Regional rules of the various 17 Autonomous Communities (AC) in Spain. If you have been habitually resident in an AC for at least three years the relevant Regional rules will apply. They might also apply to gifts in other circumstances. If the AC cannot be determined then the State rules will come into force.

In the Region comprising Alicante, Valencia and Castellon and in the Balearics there is virtually no tax between spouses or children as long as the heirs ordinarily live in the same Region at the date of death. If you live in one of these Regions but your beneficiaries live outside it, when you die, then they will be liable to SST unless you take appropriate measures to avoid this.

There can be a reduction in the value of the house in these and the other Regions (such as Andalucia, Cataluña and Islas Canarias) up to a certain amount. This is applicable provided that: a) the inheritor is a spouse, ascendant or descendant (or failing that, a relative over the age of 65 who lived with the deceased during the two years prior to his death) and b) the property is retained by the beneficiary for 10 years following the death, but does not need to be the main home of the beneficiary. If the beneficiary dies within 10 years, the succession tax is not clawed back. The maximum deduction available is €122,606 (approximately £83,281) inheritance per beneficiary.

In some Regions the relief is slightly higher if it was also the main home of the beneficiary.

The complexities of the SST rules and the various calculations that have to be made can be a real headache and at the end of the day most beneficiaries will have to pay some, if not a lot, of SST. How can you avoid this?

If your beneficiaries are not resident in Spain, or they are, but there are not enough reliefs in your Region, a considerable amount of SST can be saved with the right sort of scheme such as a Lifetime Loan, whereby equity is released from your property, reducing its taxable value. You could choose to invest the proceeds for income, in which case the investments would need to be placed in a suitable offshore discretionary trust. Thousands of Euros in SST can be avoided in this way.

Is it worth borrowing to save tax?

It partly depends on your age and life expectancy, the value of your estate and any available tax allowances. The older and wealthier you are, the more it will make sense. If you have a short life expectancy due to a medical condition, then borrowing and investing offshore to save SST may be a very sensible thing to do.

You could take out a Lifetime Loan and invest ‘onshore’ to generate income, but in this case the money would remain liable to SST (and other taxes). On the other hand, transferring your capital into suitable structures offshore can give you outstanding SST savings. Any investment returns could improve your retirement and/or benefit your estate in the future as you wished.

To find out if it is worth borrowing in your particular circumstances, specialist advice should be sought and a personalised illustration obtained. The loan may not be suitable for you if your estate does not have much exposure to SST. You should never borrow solely to create investment income and returns.

For any more information on any of the above issues, please contact
Jane Hayward at the Blevins Franks Tax Advisory Service:
T: +44 (0)20 7015 2126
E: jane.hayward@blevinsfranks.com
www.blevinsfranksinternational.com

More Sound Insulation Mandatory from 2009

The Spanish government has introduced new regulations to increase the sound insulation of all new buildings in Spain. Developers now have a 12 month grace period in which adopting the new standards is voluntary. When this period runs out the new standards will be mandatory. The measure is expected to increase Spanish building costs by between 0.33% and 0.75%.

Live In Spain, Work In The UK

Budget airlines are making trans-continental commutes popular. With so many people currently living hours from London, and commuting to the capital daily for work, the era of budget airlines is making trans-continental commutes increasingly popular.

The expanding coverage of the European rain network, competitive airlines flying from airports throughout the UK, and more flexible working hours than make means that it is now more convenient to live in Spain and commute than it is to spend half the working day crawling along congested British motorways to central London, or spending hundreds of pounds on rail travel.

A recent report states that the average daily commute for a British worker is one hour and thirty minutes, with many suffering even longer journey times. With this in mind, a growing number of savvy workers are relocating to Spain while retaining their current, UK-based jobs and enjoying the best of both worlds.

Spain’s combination of good weather, laidback lifestyle, lower living costs, excellent air transport links and close proximity to the UK make it the obvious choice for those commuters looking for something different without spreading their wings too far.

While it may not be realistic to travel so far every day, many people are opting to arrange to go into the office for three days a week, and working from home for the remaining two days, while other people arrange to work a ten day on/ten day off shift pattern, staying with friends while in the UK.

So, it can be done, especially if your new home is close to an airport serviced by regular, low cost flights, flexible working hours, and a laptop with round-the-clock internet access. Monday blues could soon become a thing of the past.

Full story from homesworldwide.co.uk

Brits Dream of Place in the Sun

This summer's bad weather has led to almost half of Britain considering buying a place in the sun, new research has found.

A survey conducted for Yorkshire Bank found that 43 per cent of people were thinking about purchasing a property abroad.

The poll of 1,000 people found the biggest draw for buying an overseas home was the prospect of guaranteed sunny weather, cited by 66 per cent of respondents.

A further 55 per cent said the dream of a more relaxed pace of life enticed them to buy a foreign pad.

Spain was found to be the most popular destination for prospective overseas property buyers, with 45 per cent of respondents saying that they would invest in a holiday home there.

An additional 31 per cent of people said that they would buy a property in the country as part of their retirement plans, while 32 per cent of those questioned said they would buy a property abroad as a long-term investment.

Meanwhile 15 per cent said they would consider buying a home abroad as their best option to get a foot on the property ladder.

However 44 per cent of Britons said they feared they could be ripped off as they did not understand the buying process abroad and 35 per cent said they thought they would find it stressful trying to recruit the necessary professionals, such as estate agents and solicitors.

A further 34 per cent said they were concerned about how they would negotiate a sale in a foreign language.

Commenting on the results of the survey, Yorkshire Bank's director of retail banking Steve Reid said: "Buying a house, let alone buying one in a foreign country, can be a challenging business".

"Despite this, Brits are still convinced that owning property in Spain is a financial decision worth pursuing

Story from inthenews.co.uk