Business as usual on Costa del Sol despite Brexit

WHILE last June’s referendum result was not the one many of us were expecting, the property market in Spain has steered clear of doom and gloom.

Some Brits may have become hesitant in the immediate aftermath, but buyer confidence has remained buoyant.
Indeed the Finance Bureau has had one of its busiest quarters at the turn of this year.

And as hard Brexit may raise concerns for some property analysts, the track record of British buyers should give them a clue as to how the market will be affected.

The most obvious potential pitfall will be the exchange rate.

The pound Sterling may have dropped against the Euro but it has not been catastrophic.

It’s currently around the 1.15 mark, and the UK government has vowed to take steps to shore up the currency if necessary.

A weaker sterling will have an effect when banks calculate a client’s affordability status.

This will only hit borderline clients and could result in a mortgage being declined, but banks in Spain will always consider the exchange rate, and once it recovers it will immediately improve your affordability status.

Elsewhere, interest rates are set to remain low.
The European Central Bank has confirmed they will keep them down for a sustained period as they want to fulfil their responsibility to ‘provide price and financial stability in the eurozone.’

Adding to this, Spanish banks have also confirmed they will not change their lending policies to Brits.

Last year, bank bosses including president of Banco Sabadell Josep Oliu, promised it would be ‘business as usual’ despite the Brexit vote.

While Brexit has often brought uncertainty, what is clear is that the Brits have long proved the doom and gloomers wrong.

During the financial crash in 2008, which saw near parity between the Euro and the Pound, they continued to buy up despite fears that they would drop off.

Considering Brexit is nowhere near as disastrous, it’s safe to assume Brits will continue to defy expectations.

So keep calm and carry on buying.