Will changes in the law bring buyers back?

In recent years, Britons bought one third of all Spanish properties sold to foreigners.These days though, many have been put off by horror stories of planning permission being retrospectively revoked and other complications. According to government figures, 100,000 homes built around the coast during the last decade still face unresolved planning problems, and residents say the true number is even higher.

Now, Beatriz Corredor, the Spanish housing secretary has promised new planning laws to end the confusion which has led to some British home owners being ordered to knock down their properties deemed to have been illegally built.

“Come here calmly, and trust in the system that we have and the transparency we provide,” she said.

“There is a very attractive offer on the table here, with prices significantly lower than two years ago, and you will certainly find what you are looking for.”

As part of a package of legal reforms to be steered through the Spanish parliament this month, for any property being sold the local council will be obliged to provide a document stating clearly its boundaries, the category of land on which it stands, its access to services including water and electricity, and details of its planning approval.

However, it is important to note that these changes will not be applied retrospectively and that national laws may well be ignored at regional level. At least knowing what paperwork you should get will make new buyers more aware.

To try and kick-start the housing market back into action, the Spanish government are embarking on a “roadshow” around Britain and other northern European countries over the next few weeks to promote the country’s property market. I have no doubt there will be some attractive houses on offer at very low prices -tempting!

That might not help the clients of Gabi Baischer, managing director of In Sun Properties in nearby Villamartin who has not sold a single property to Britons in the last month. On Thursday she sold a two-bedroom whitewashed townhouse for €107,500 — less than half the initial price. A British family is selling their villa with a swimming pool, originally bought for €320,000, for €260,000. A third property, a pretty three bedroom semi-detached villa with views down to the coast, is on the market for €205,000 — €120,000 less than its original asking price. It too is being sold by Britons.

“Over 90 per cent of our business three years ago was British people buying,” she said, “and now, it’s maybe two per cent. It has totally dried up.”

I dare say Gabi Baisher would argue that It will take more than a road show and a few promises from the government to bring the British back to the Spanish housing market.