A report released by Barclays Bank has revealed that house prices in foreign climates such as France and Spain are being driven by and are directly linked to the UK boom.
The report cited that 40% of all property built on the Costas last year was bought by British people with over 60% to be used as second or holiday homes.
House price inflation in certain areas of Europe mirrored that of UK inflation reinforcing the link.
Our view
No shocks here. The shock will be next year and thereafter.
As the UK market slows down, Euro hotspots will do the same. We work in Spain frequently and over the last few months we have started to see more and more properties actually be reduced.
There is a massive amount of available property and less buyers as confidence falls.
Be careful if you choose to buy now! Take advice from us first.