The latest Quarterly Index figures from the OverseasGuidesCompany.com – made up of downloads of its quarterly buying guides – record 14,359 enquiries during the first quarter of 2015. This figure represents a 22 percent increase in comparison to the same time in 2014, in that year’s strongest quarter.
Total enquiries for the first half of 2015 were up 27 percent compared to the same time in 2014 – however, there has been a 5.56 percent drop in enquiries since the highly successful first quarter of 2015. The UK’s general election, ongoing discussions about a UK-EU referendum and Greece’s economic situation have all caused concern for the Brits. Many would-be property buyers have put their plans on hold.
Spain remains in the spotlight
Spain remains the most popular country with British buyers, with SpainBuyingGuide.com downloads accounting for 32 percent of all enquiries this quarter. The company recorded a figure of 4,618 enquiries this quarter, although this has fallen 11 percent in comparison to the buoyant first quarter of the year. Despite this, enquiries about Spanish property were still up year-on year, with a very healthy 55 percent increase from Q2 2014.
The Costa del Sol and Costa Blanca continue to drive the Spanish market, proving the most popular areas of Spain with UK expats and second homeowners.
France still ever-popular for British buyers
France came in second place, accounting for 22.5 percent of all enquiries. Enquiries for France were in a better position than those for Spain in Q2, dipping by just 0.5 per cent compared to Q1 2015 and totalling 3,240 for the quarter. FranceBuyingGuide.com also recorded a 25 percent increase compared to Q2 2014. This reflects a market that is always popular with British buyers, with fewer ups and downs than its neighbours in Spain and Portugal.
The South-West of France continues to be a key buying area for the British, from the Charente Maritime down to the Pyrénées Atlantiques; and across to the Lot and Tarn et Garonne.
Portugal continues to perform
Portugal has made steady progress, coming in third place, with 10.5 percent of overall enquiries. Interest from British buyers in Portugal has continued year on year, ending the last three months on a fairly even keel compared to the first quarter of 2015. The 1,500 PortugalBuyingGuide.com enquiries for Q2 2015 show a good increase compared to the same time last year, with a year on year boost of 24 percent.
Italy surprises after difficult times for the market
Italy was the star performer of Q2 2015, overtaking the USA to take fourth place with a 17.6 percent rise in enquiries compared to Q1. More surprisingly, Italy outperformed all the other most popular countries from a growth perspective, with enquiries for Italy rising 17.6 percent to 1,114 in Q2 compared to Q1. This represents a year on year increase of 19 percent compared to the same time in 2014.
USA loses out in the sterling-US dollar rate race
The US saw the greatest fall of 34 percent, slipping down one place to become the fifth most popular destination. This could well be as a result of sterling’s strength against the euro, which, compared to the less favourable sterling-US dollar exchange rate, has made the US market less for British buyers.
The 779 enquiries for the USA represents a fall of 34 percent in Q2 2015 compared to Q1 2015 and a 32 percent drop compared to Q2 2014. During Q1 2014, the sterling-US dollar exchange rate was hovering just under £1/$1.70, while this year it has stuck at around £1/$1.55 – this difference of around 10 percent would mean an additional £13,000 on a $200,000 property, which goes some way to explaining the decrease in popularity as a destination for British buyers.
Angelos Koutsoudes, Head of OverseasGuidesCompany.com, commented:
“The uncertainty that came in the run-up to May’s General Election could account for the slight dip in enquiries in Q2 compared to Q1. There is little doubt that many people will have put on hold plans to buy an overseas property or to move abroad until they know what the next few years might hold in terms of financial stability, house prices and any changes to pension rules.
“Concerns following the Greek crisis and about an EU Referendum in particular have been cited as reasons to put overseas property plans on hold, despite a potential two-year wait and no guidance as yet as to what would happen if the UK were to leave the EU. While unfolding political and economic events have certainly had an effect on those with aspirations to buy or move abroad, we believe that these fears are, as yet, unfounded.
“When considering key financial and lifestyle decisions such as buying a property abroad – whether as a second home or for a more permanent move – it is so important to be able to cut through all the speculation and focus on the reality of the situation and the bigger picture, which, in this case, is not as bad as it may seem. Early indications regarding an EU Referendum are that the general UK sentiment is to stay in the EU and to continue to enjoy the relationship and reciprocal agreements we have in place currently.
“Fortunately, the outcome of recent political events has, on a general level, been well received across European markets, helping sterling maintain seven-year highs against the euro, which continues to suffer following the Greek crisis.
“Given how kind the sterling-euro exchange rate has been this year compared to the historically less favourable sterling-US dollar rate, it’s unsurprising that interest in Eurozone countries is faring better than the USA, where Florida has traditionally been the most popular destination.”
Words by the Overseas Guides Company, publishers of buying guides in over 15 countries, 0207 898 0549.
