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Brits going loco for Lanzarote?

Lanzarote is increasingly attracting disaffected Brits with its low property prices, argues one portal.

According a second quarter review by property portal LanzaroteGuidebook (LG), there has been a sharp increase in the number of British and Irish residents planning to relocate to the island, with long term rental enquiries up by 35% - a significant increase on figures from the first quarter of the year.

LG argues that the majority of these would be expats on the hunt for apartments in Puerto del Carmen, Lanzarote´s most popular holiday resort and the hub of the island's British and Irish communities. 

Whilst rents are on the rise in the UK as the housing market cools, prices in Lanzarote remain low by comparison, with one bedroom apartments costing from €500 per month- around £400 at current exchange rates.

Factor in cheaper fuel, utility and food bills - as well as non-existent heating costs - and it's easy to see why a growing number of people are viewing relocation as a cost-effective option.

Property prices on the island are also starting to soften.  Indeed, according to Spain's National Institute of Statistics, mortgage approvals across the province fell by 35% during the first quarter of 2008. 

Local banks have effectively driven prices down by tightening their lending criteria and by imposing more realistic valuations on vendors.  As a result, all of the leading estate agents in Lanzarote have reported an increase in the quantity of price reduced property in their portfolios.

A spokesperson for the Lanzarote Guidebook commented: "The Lanzarote buyers market is attracting plenty of overseas interest, and with overseas visitor numbers up 5.5% for the first half of 2008, the region's popularity as a holiday destination shows no signs of waning despite the current economic conditions. 

"The majority of prospective investors are on the lookout for property priced below the €300,000 threshold, and property in Puerto Del Carmen remains the hottest ticket for overseas buyers, accounting for 41% of all enquires received".