Our low cost love affair with Spain
2 May 2006
When it comes to owning a holiday home in the sun, Spain remains the most popular destination for British people buying property in Europe.
The Official Social Trends Report has reported that Spain accounts for 27% of all Briton's second homes abroad and the Spanish Ministry of Tourism expects 1m foreigners to set up home on the Spanish coast within the next six years.
The demand from British people for property in Spain has been fuelled by the demand for low rate Euro mortgages and the boom in low-cost, budget airlines, according to Banco Halifax Hispania, the Spanish arm of Halifax, the UK's largest lender.
Research from OAG has shown that the number of low-cost flights to and from Spain is up 25% on last year, while low-cost operators within Spain have increased by 160%. The growth in low-cost, budget airlines has not only opened up the sun, sea, and sand in Spain to the independent traveller, but has also driven the development of new, regional airports.
According to the Civil Aviation Authority (CAA), passenger numbers from UK airports increased to 217m in 2004, an 8% increase on 2003's figures. In addition, regional airports have seen passenger figures triple from 1987 to 2005 and saw 9% growth in 2004 alone, increasing to 88m passengers.
The highest growth in regional airports has been in Newcastle, which experienced a 21% increase of 0.8m passengers, followed by Bristol at 19% (0.7m) and Leeds Bradford airport at 17% (0.4m). In addition, flights to Spain from the UK increased by 4% (1.2m) in 2004, compared to 2003.
With daily, low-cost flights leaving to Spain from numerous, national and regional airports across the UK, British people can now benefit from shorter, more frequent, affordable trips to Spain, traveling from places close to home. Research from Euromonitor's 'Travel and Tourism in Spain' report, reported that one to three day breaks are the fastest growing type of holiday in Spain, accounting for 37% of all trips in 2004.
Ian Smith, head of European operations at Halifax said: "Flying to Spain is often quicker and cheaper than rail travel from the larger UK cities to London. The low-cost airlines mean that people can have shorter, more frequent trips to Spain, traveling from places close to home.
"With the low cost of mortgages, many people have now realised that owning property in Spain is a real possibility and Banco Halifax Hispania has continued to see an increase in the number of UK residents wanting to buy property abroad."
Dealing with customers in English, Banco Halifax Hispania guides them through the house purchase process by providing information from the General Land Register, including the current situation with the property and its owners, as well as any pending charges. In addition, once a suitable property has been identified, Banco Halifax Hispania can arrange for external reports covering the house and its market price.
Banco Halifax Hispania has an approved panel of qualified solicitors and surveyors in the popular Costa del Sol and Costa Blanca regions. These solicitors and surveyors have local knowledge and experience of acting for British customers.
Working alongside the Banco Halifax Hispania branches in Spain is a UK based operations team. This combination provides customers with the choice of arranging their Spanish mortgage whilst still in the UK or from their local Spanish office.
Ian Smith continued: "Our mortgage products are designed with British residents in mind. We certainly understand the type of mortgage products that British customers require, based on our vast experience in the UK and our knowledge of British attitudes and culture."
