Property buyers in the UK; many of them first time buyers are in flux following the sudden decline in the domestic market and state of the UK economy, and are showing increased interest in properties on offer in sunny Tenerife.
Tenerife's popularity remains on the increase due to in part the constricting UK economy. Many British buyers are realising they can get on the property ladder by grabbing an affordable home in the sun, enjoy more property for their money, with lower mortgage repayments and running costs and have a holiday home to boot. Add to this an extra income for those who buy to 'holiday let' with the 52 week season and it is easy to see why demand is increasing.
The following is a comparison between the UK and Tenerife:
Affordability (Starter Home):: Tenerife Average: £100,200 | UK av £180,256
Running costs :: Tenerife: Typically £2,500 pa | UK average £4,201 pa
Living costs :: Tenerife 35% lower
Rentability :: Tenerife - record tourists and a 52 week season
Rentability :: UK declining as non London over supply.
Mortgages :: Tenerife: Good supply with positive attitude | UK Supply virtually nil with negative attitude
Loan to Value :: Tenerife 70-80% | UK 65-75%
Bank of Spain :: Enough surplus to provide credit demand
Bank of England :: No surplus, injecting extra £billions weekly
Many British property buyers in Teneife will find they are competing with Russian, Italian and Scandinavian 'holiday home' hunters. As northern and eastern Europeans prepare to 'huddle down' for the Autumn/Winter, the major property selling seasons in Tenerife gears into action. Already there has been an upsurge in demand throughout the Autumn and Winter from Russian, Rumanian and Polish buyers and of course the British.
Many buyers tell us they have more confidence in the Tenerife property market than the UK and are convinced they get more for their investment.
They also see that Tenerife offers an alternative lifestyle with greater opportunity than does the constricting UK economy.