Adios England, Hola Tenerife

Leading Estate Agents, Tenerife Property Shop, released research results this week which show a dramatic increase in the number of people buying homes in the south with the intention of emigrating, rather than just for a holiday getaway.  The research shows a thirty percent rise in Britons buying property in Tenerife with the intention of living here.

Britain has suffered waves of emigration in the past, most notably in the 1970s, when a popular T-shirt bore the slogan "Will the last person to leave the country please turn out the lights" and Britain lost a net 400,000 people to the brain drain. But there is an enormous difference between 30 years ago and now. Then, unemployment was growing, income tax hit a top rate of 98 per cent and the influence of the trade unions made it difficult for those with entrepreneurial talents to succeed. Now, Britain is losing hundreds of thousands of people who are not seeking to make their fortune, but spend it.  The house price boom has turned almost every British homeowner into a lottery winner.

Mary Spencer, of Tenerife Property Shop commented, 'With house prices in Britain having gone through the roof, Britons all have more money in their pockets to spend on luxuries and investment purchases.  There is generally more wealth around and people want a better quality of life so buying a home abroad is perfect for them." Between 1998 and 2003 personal disposable income has risen by just over 23 per cent. The unexpected paper wealth has inspired many to swap their semi in Manchester - and still have enough left over for a decent pension.

Market analysts, Mintel, in a recent survey said that of those with homes in Spain, 65 per cent said they were attracted by the climate, 45 per cent wanted to spend more time outdoors and 40 per cent were lured by the cheaper cost of living. Many of those emigrating have had highly successful careers but have come to view Britain as a place of all work and no play. Thanks to the return of the work ethic during the Thatcher era, Britain has switched from being a country where people grumbled about the three-day week to one where people grumble about the seven-day week. Even in leisure time, Britain is an indoor society, where people tend to go to expensive restaurants to enjoy themselves. The promise of sunshine, cheap food and a slower pace of life has prompted more than half a million people to buy a property abroad, the Mintel survey shows. The report added that gripes with education, crime, pollution, terrorism as well as the long working hours in the UK were also fuelling demand to move overseas.

Mintel predicted that the UK Spanish property market - at present worth '12 billion - would reach '21 billion within five years.  As a nation we own over 1m second homes, of which 550,000 are overseas. In the past 12 months, Brits have purchased 75,000 Spanish properties at an average cost of '160,000. It is estimated that by 2009 that figure will grow to nearly 100,000 homes a year. Head of consultancy Helen Osman said: 'Although growth is likely to drop off from its current level, it is still expected to be strong over the next five years. However, countries touted as growth destinations, such as Bulgaria and Croatia, aren't likely to see significant growth because of a lack of infrastructure.

Tenerife Property Shop's research cites various reasons for the Island being such a popular location for the British.  Tenerife has a well established environment for the British which necessarily means a much greater infrastructure, not just in terms of roads, health and communications but also in the availability of British culture, like schools and local papers printed in English.  As we are in Europe, residents can also still receive UK pensions.  Mary Spencer added, 'The increase in the number of cheap flights to Tenerife has also made the island a more convenient place to escape to, and of course nowhere in Europe can compete with our weather!'