Spain has become a popular destination point, as evident from the high number of Britons rushing to buy second homes since the beginning of 2021. Even with post-Brexit restrictions that allow Britons 90-days visa-free stay in EU countries every six months.
The sudden surge in attractions to the houses in the sun is driven by the impact of COVID-19, forcing people to stay under lockdown for months. The allure of holiday beaches and Golf Courses is a fresh break from the lockdown experience that has created a renewed enthusiasm for leisure and holiday among Britons. Britons are also motivated to get second homes in Spain because of the freedom of working away from the office, popularized during the lockdown period.
Taylor Wimpey, a renowned developer in the UK, Spain, and other European countries, has confirmed the increasing surge in housing demand. Taylor Wimpey Espana reported increased reservations and a 39% rise in property purchases in Spain in 2021 alone. The developer also built 25 homes in 2021 than in the previous year, with an average price increase of £35,000.
Back in the UK, the increasing demand for property is evident, creating fresh hope for property developers and investors after the impacts of COVID-19. Despite the rising cost of building and growth in average selling price, 18% of new homes remain affordable. Both buyers and property developers such as Taylor Wimpey remain optimistic about continued gains and future sustainability.
Despite the positive outlook, the UK’s property industry is highly impacted by the current Government’s directive on the cladding crisis. The order issued by Housing Secretary Michael Gove requires property developers to fix all buildings over 18 meters affected by the cladding issue. This could mean stagnation in the growth of property prices. Furthermore, a decline in property demand will further exacerbate the situation for property developers.
Taylor Wimpey made a statement reassuring its investors that these issues will not create a huge impact. The company has proactively identified its buildings that need fixing and set aside costs. Even with the possible decline in demand, the property developers still have an opportunity of buying land at lower prices for future development.