As the mercury rises, residents in Tenerife are agog by the news bulletins of the UK submerged. Our first article charts a sudden upsurge in enquiries for new property in Tenerife, and cites the weather in the UK as a major factor. We also look at the uproar that has been associated with the British Press' inaccurate reporting of the Spanish property market in recent months, as experts and the Spanish public agree that much of it has just been sensationalist news, designed to sell more newspapers. In our third article, we report on a change in law that affects many expatriates, who are self employed. Dubbed as one of the most important laws since the 1980's, it makes self employment a less risky option. Finally, we have our usual selection of news cuttings followed by the cream of what's on offer in the property market at the moment. We hope you enjoy the read, and look forward to meeting you on your next trip to the sun.

The last half of July saw a sudden rise in the number of new enquiries for property in Tenerife. Traditionally, August is a quiet month for estate agency in Tenerife, so this bucks the normal seasonal fluctuation. The number of people contacting Tenerife Property Shop was double the expected amount. A combination of bad weather, UK interest rates and reduced confidence in all but Tenerife's most established Estate Agents are seen to be responsible for this shift in demand.

"For many people, this has probably been a knee jerk reaction to the extraordinary weather the UK has been getting during July. Yet again, another English summer has been washed out," said Mary Spencer, a Director of Tenerife Property Shop. Monarch, the low cost airline, report an incredible 40% surge in last minute bookings, as depressed Brits look to escape the UK weather.

Meteorologists in the UK inform us that the huge rainfall, due to a shift south in high pressure weather systems, is likely to be an effect of global warming. They warn such freak weather conditions will become ever more likely in the future.

Another factor driving an increased number of enquiries towards Tenerife Property Shop is an increase in the number of agents closing and re-opening. This has reduced confidence in all but the most established agents, as buyers and sellers fear the repercussions on their property transactions conducted through such fly-by-night companies. The media has been reporting horror stories of clients caught out by less than scrupulous estate agents, and a greater number of them are now insisting on Professional Indemnity Insurance.

And there is a third possible reason for the upsurge in interest in Tenerife's property. To add to the misery in the UK, interest rates have been rising steadily since last year, which has dampened the housing market in the UK. A raft of data from sources such as the UK land registry, the Royal Institute of Chartered Surveyors and Hometrack, show that activity on the market has slowed and most areas of the UK have experienced price stagnation or even price drops.

Whichever factor has proved to most influence UK buyers, and each has probably had a part to play, this rise in interest is unique for the summer months. Whether this is the start of a new trend or whether it is a freak seasonal anomaly, like the UK flooding, remains to be seen. Although the direct effects of global warming on Tenerife are predicted to be minor over the coming 30 years, their wider repercussions will certainly continue to have a positive impact on demand for the island's property, as more and more people seek a clement climate.

Recent months have seen the Spanish property market take a battering in the UK press, but industry watchers have called into question the veracity and accuracy of the reporting we have seen. After the media frenzy of reporting market slumps, it now transpires that the market in many areas, including the South of Tenerife, has been experiencing sustained activity and the lack of confidence is turning out to be a very British phenomena. Now the media is being blamed for sensationalist and biased reporting.

"Spanish construction firms recorded losses on Madrid's stock exchange - but did this warrant the 'nosediving' headlines about Brits' number one second-home market heading for a 'crash'?" Asks the reputable industry magazine, Overseas Property Professional. The magazine used an example of Sir Trevor McDonald's Tonight crew, who told another doom and gloom story for ITV. Those who appeared on the programme - and others who were interviewed but edited out - told the magazine all the positive things they said failed to make it into the final cut. Instead, they said, the programme showed an unbalanced story portraying the whole of Spain in crisis - no stunning resorts and no happy buyers. An auction company was also given a hard time because it only sold one property under the hammer. The reporter was told by someone in the audience that the auction was organised at such short notice that the auctioneer had to phone friends to sit in the room. Then ITV told a story about a British buyer's 'land grab' problem, without pointing out to viewers that this was specifically a Valencia issue.

The magazine conceded that there was no denying that there is a slowdown and over-development in certain parts of Spain, but that business writers were being too sensationalist. The magazine mischievously suggested that Spain should change its name because headline writers were rhyming Spain with too many words like "pain", "no gain", "strain" and "shame".

Other industry pundits agreed with OPP's findings.

"Spain is a victim of its own success - people made good money, driving price inflation. There are now over 45 countries selling into the UK, many offer entry prices and investment returns that Spain can only dream of. The media fuelled this. Spain will recover, 31% of those asked at UK airports want to buy in Spain. Now arguably at its lowest ebb, I think it will go higher, perhaps to as much as 40% within three years." - Peter Robinson, Richmond Green Marketing.

"I don't think the media is directly responsible. This all came about because a lot of shareholders started selling off shares in Spanish building companies and this was interpreted by the media that the Spanish property market is in trouble. It depends on how you interpret it. Spain will still be one of the most popular places for second homes and lifestyle buyers, if not the number one, but the Spanish property market is not in a ‘crash'." - Matt Havercroft, A Place in the Sun.

"British investors and holiday home owners have concerns about the market based on personal experience, difficulty to resell property or flip units that were oversupplied and in some cases over-priced. The media has simply picked up and reported on current consumer opinion. But Brits and Irish have been holidaying in Spain since the 60's and have a huge fondness of all things Spanish so the market will always exist." - Steve Dawkins, Real Estate TV.

At the same time, the general point of view of the Spanish populous remains upbeat. 72% of Spaniards think that house prices will not lower in the next 12 months, according to research company TNS Demoscopia. 8.5% of the population are thinking of buying a house in the next year.

The Spanish parliament has passed a law designed to improve the status and protect rights of self-employed workers.

Since Brits discovered the benefits of moving to Spain, the majority of younger expats have lived the dream of being their own boss, starting up companies such as construction firms or holiday ventures. However, until now they have always faced discrimination by the Spanish government, with a lack of sick pay entitlements, no paternity or maternity leave, and no minimum health and safety conditions in the workplace.

The new statute, named Estatuto del Trabajo Autónomo (The Statute of Self-Employed Work), is the first attempt in 40 years that the Spanish government has attempted to rectify these failings, which affect conditions for more than three million people in Spain. It is the first law ever to specifically regulate this sector, and has dissolved inequalities between the self-employed and salaried workers, ensuring that all workers receive social security protection, regardless of their status.

Under the law, self-employed men will be entitled to 15 days' paternity leave while self-employed women will have their maternity rights extended to match those of salaried mothers. Self-employed workers will receive full unemployment benefit in the event of them losing work as a result of circumstances beyond their control, and will be entitled to sick pay resulting from both illness and accidents. Self-employed workers in especially dangerous sectors will be entitled to early retirement and minimum health and safety conditions in the workplace will apply.

Unusually, the bill was approved unanimously by both of Spain's opposing political parties, and has been rated by the Socialist party as one of the most important laws to be passed in the country since the 1980s.

Train Line Coming South
Debates about the proposed route of the train line that will link the tourist areas of the south with Santa Cruz in the north are becoming more heated. The route passes through protected land, and the greens are obviously upset. Work will begin in the second half of next year, but don't hold your breath, it will take about six years to complete.

New Yacht Race to Set Off from Tenerife

A new transatlantic yacht race has been announced for November. The Maxi Yacht Rolex Cup will start in Santa Cruz and finish 2,600 miles later in Saint Maarten, in the Dutch Antilles. The regatta will be a bi-annual event and is stirring up a great deal of interest in the Yachting world.

Ryanair Flies South
Ryanair is to switch its low cost flight routes from Tenerife's Los Rodeos airport in the North, to the southern airport. Customer demand is cited as the reason behind the change, which spells good news for property owners in the south as it will be easier and cheaper to visit your home in the sun.

An Eighth Island for the Canaries?
A new book by the eminent vulcanologist, Carlos Carracedo tells how a new island is forming some 80 miles south west of El Hierro. Before you start reaching for your cheque book to invest in this new emerging property market, you'll have to be patient...it will be six to eight million years before the new island rises above sea level!