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REAL ESTATE

Remain supporters eye move to Spain after Brexit vote

The number of British citizens looking to move abroad has increased by 30 percent since Britain voted to leave the EU, with Spain one of the top destinations.

Remain supporters eye move to Spain after Brexit vote
Photo: AFP

Many Britons unhappy with the result of the recent vote to leave the European Union are considering a move abroad; a recent study by the London School of Economics concluded that as many as ten percent of 18- to 25-year-olds who voted to ‘Remain’ are now considering leaving the country.

And far from being put off moving to Europe, where they are now unsure of their rights, many Brits are seriously thinking about making the move.

Spanish real estate agency Lucas Fox International Properties told The Local that it had registered an upswing in enquiries from UK-based clients interested in moving to Spain following the UK’s decision to leave the EU.

Brits are especially interested in moving to Spain's three biggest cities: Madrid, Barcelona and Valencia, where there are more job opportunities, the realtor said. 

Sebastian King, a 22-year-old living in the South of England working in financial services, contacted the real estate company just a few days after the result, claiming he felt ‘disconnected’ with the UK following the decision to leave the EU.

“I have been looking to move to Valencia for a year or so now but the Brexit result made me want to get a move on,” King says. “For me Valencia has it all – the climate, it’s exciting, full of history and culture as well as having a beach.

“Overall, I think Spain has lots of potential and for my business it is an ideal place to expand, thanks to a cheaper workforce. When I compare the UK to Spain, I see Brits simply surviving whilst the Spanish are really living”

The fall of the pound has made it more expensive for Brits thinking about moving to Spain, but not everyone is put off by the hike in prices.

“I appreciate that it is still early days but we don’t expect it to overly affect our day-to-day business,” Lucas Fox co-founder Alexander Vaughan told The Local.

“Spain will always have an appeal for the British even though it may become marginally more expensive for them holidaying or buying here. In the long term, British buyers should still benefit significantly if they buy property in Spain.”

And Brexit could have an unexpectedly good impact on the Spanish property market.

“We are hopeful that we may even see the positive impact of Brexit on the Spanish real estate market,” said Vaughan.

“Many non-European buyers have started looking at alternative city locations to London which also have good property investment potential. There is also the prospect of some London-based banks and financial institutions moving some of their staff from London to Madrid.”

It might not just be Brits eyeing a move to Spain; with their future in the UK currently up in the air and a rise in xenophobic attacks following the referendum, it might not be long before Spanish expats in the UK decide it might be time to return to Spain.  

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PROPERTY

Spain’s plan to limit temporary accommodation rejected

Spain's left-wing government had planned to tighten its grip on temporary accommodation rentals as a potential means of making more long-term rentals available, but the country's right-wing parties on Tuesday rejected the proposal in parliament.

Spain's plan to limit temporary accommodation rejected

If passed, the new law would have meant that anyone who wanted to temporarily rent a property would have to explain why and provide a valid reason.

For example, students or researchers would have to show the research contract or course booking to show it would only last a few months.

It would have also meant that if more than six months passed or more than two consecutive contracts issued, it will have automatically become a long-term habitual residence instead.

On Tuesday September 17th, the proposal was ultimately rejected in the Spanish Congress, voted against by Spain’s three main right-wing parties – Catalan nationalists Junts, Spain’s main opposition party the PP and far-right Vox.

The aim in part was to try and rectify the controversial Housing Law, which came into effect in 2023.

In most people’s eyes, the legislation has failed as landlords have found several loopholes to get around the restrictions, prices have continued to increase and the stock of rental properties is even more diminished.

READ ALSO: Has Spain’s Housing Law completely failed to control rents?

As a result of the fear of heightened regulation for landlords, many have left the traditional market and turned to tourist rentals or temporary accommodation instead, which are far more lucrative. 

This has had the opposite effect, increasing rental prices instead of stabilising or decreasing them.

READ MORE: Why landlords in Spain leave their flats empty rather than rent long-term

Seasonal contracts and room rentals allow landlords to raise prices every six or nine months and they not subject to the price limitations of the housing law.

The idea of this new law was to try and set the maximum duration of a temporary rental contracts at six months in order to avoid this, but it could have potentially also caused problems for many who need this type accommodation such as students, digital nomads, those living here on a short term basis etc. 

During the debate, Sumar’s spokesperson, Íñigo Errejón, defended the law saying that it is a “solvent”, “fair” and “precise” proposal, which will help “correct an abuse” and “close the gap through which “Landlords can use to avoid the LAU (Urban Leasing Law) and rent regulation”.  

Far-left party Podemos blamed the ruling PSOE for having left this “hole” in the housing law, but also agreed that the restrictions on temporary accommodation were needed to try and rectify this.

READ ALSO: Has Spain’s Housing Law completely failed to control rents?

Junts (Catalonia’s main pro-independence party) and the PNV, the Basque nationalist party, were firmly against it. They agreed that the problem must be solved and that “accessible decent housing was needed”, but raised the situation of students, interns, residents or workers who need housing for flexible periods.

Junts party member Marta Madrenas warned of the harmful effects that this limitation on temporary rentals can have for university cities such as Girona.

Vox and the PP meanwhile argued that they don’t want to help cover up the mistakes made by the left with regards to the Housing Law.

Vox deputy Ignacio Hoces stated that the increase in seasonal rentals has occurred due to the “failure” of the Housing Law, since this has caused rental prices to “skyrocketed” by 13 percent and the supply to be reduced by 15 percent.

Temporary accommodation, referred to as alquiler temporal or alquiler de temporada in Spanish, is considered to be anything that’s longer than a month but shorter than a year, middle ground between short-term and long-term rentals. It is also referred to as monthly accommodation or seasonal accommodation.

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