The property market in the UK and here in Spain has certainly changed over the past few months. If you are buying or selling here in the Axarquia then inevitably you will have concerns about how it's all going to affect you. Headlines in both countries can be worrying but, as with most things, the media reflect the worst case scenario and the situation is more complex and more varied than they generally portray. So whilst you do of course need to consider your options as the market changes, you shouldn't be put off by these stories – talk to us and we will give you an honest view about what is happening locally.

A local perspective

So what is the local picture at present? First of all, it's important to clarify that we don't have the infamous ‘land grab' problem around here. It is true that some difficulties have been caused in many coastal areas where developers have rushed to build and cash in on the boom in sales of holiday and permanent homes to foreigners, which has resulted in a massive over-supply of new projects in the current economic climate. However, whereas there is probably a minor over-supply of new property in this area, developments are comparatively small and have a more mixed market appeal, selling to both local people and foreigners. Prices have fallen slightly and there is no doubt that buyers are more likely to make offers below the asking price. Inland and less developed areas such as the Axarquia will always have a special appeal to certain buyers and of course there are many very special and individual village and country houses that will always remain popular. Houses are still selling and there are still plenty of people pursuing their dream of a home in the sun.

Finances

The strength of the pound can either be a blessing or a curse, depending on whether you are buying or selling! Sellers moving back to the UK may have to accept a lower price than they had hoped for their property but the exchange rate often more than makes up for that. If you are buying then of course your new home will cost you more pounds than you might have been planning on but you may be able to negotiate yourself a great deal in the current market. Swings and roundabouts probably just about sums it up.

Buyers who need a mortgage will need to carefully consider whether a UK or Spanish euro mortgage will be most advantageous. Spanish mortgage rates are a little lower here but in this case you can avoid the need to transfer all your monthly payments into euros. However, the cost of setting up your mortgage in Spain can add 3% to the costs so do make sure that you check out all the options and make the right decision for your situation. You should also think about a mortgage that can be moved easily without big financial penalties so that you can be as flexible as possible as the situation changes over the coming months and years.

So in summary, don't be put off by the hype but do make sure that you do your research and your planning with care. For more information about buying a property you can read our buyers' guide here. For those of you who are looking to improve your chances of achieving a sale at a sensible price then we also have sellers' guide to help you along the way.