THE British property boom in the Balearics is pushing local house prices up again.
A recent study of the Spanish and French property market carried out by Barclays Bank has revealed that last year in Spain, 40 percent of all properties sold in coastal regions were bought by British clients. In the Balearics, the property boom pushed prices up by 21 percent, three-times the traditional house price growth of around six to seven percent, according to the research carried out by Barclays.
As the Bulletin reported last week, while less Britons are coming on holiday, more are coming to the Balearics to live.
The three main reasons for the British exodus abroad are that equity release has reached record levels with property owners making a small fortune, more than enough to buy a foreign property outright in many cases.
Secondly, with low cost airlines flying to more destinations and more regional airports, it is easier and cheaper to get abroad than ever before.
The third attraction is that interest rates in Europe are also at historically low levels, even cheaper than the UK, meaning that mortgages in France and Spain offer good value.
It is estimated that over 100'000 Britons will leave the UK to live abroad over the next six months. Portugal is also proving to be one of the top three European destinations. There is also a big pull towards countries like Croatia where properties are even cheaper, but the countries are less developed. However, while the exodus abroad is good for European economies, British authorities are worried that Britain will suffer the same brain drain as Australia with so many professionals taking their families overseas.
The latest report claims that within the next decade, one in eight Britons aged over 55, will live abroad.
The Centre for Future Studies has said in a report that 50 percent of Britons moving abroad are doing so because they are no longer happy with the quality of life in Britain.
Further afield from Europe, Florida is proving popular with Britons cashing in on the weak Dollar.