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A phoney recovery? - Stewart Andersen

Has Spring Sprung?

Is the property market improving? Are things on the way back up or is it a phoney recovery? Stewart Andersen reports on a couple of green shoots…

Spring and warmer weather in Europe, in theory, is just around the corner although here we are almost two weeks through March and friends who live about 45 minutes driving time south of Toulouse have just reported that they woke to find their garden cowering under a blanket of snow. Their two dogs politely declined the offer to go for a walk and curled up by the chimney.
When I mentioned spring, I was talking about a couple of things that happened in terms of property in the last few weeks that were quite astonishing.

Just over two years ago, friends who live in London had their house valued and the consensus of opinion of three estate agents was that the four-bedroom property should be put on the market for around £750,000.

At that point they weren’t sure about selling it but as properties nosedived they suddenly changed their minds and contacted the agents again. After numerous viewings and hordes of potential purchasers tramping through their home, the best offer they had was £540,000. At first they were tempted to take the cash and run but in the end they thought long and hard and withdrew their home from the market.

Time passed, a relative left them some money and they bought a home in France. This property needs work (to quote the phrase used in the antiques business, it was ‘as found’) and yet again they thought about selling the London house, downsizing in the UK and using some of the cash to do up their ‘maison’.

Back they went to the same agents and even before there was time to put the particulars in the shop window, they had an offer of £740,000, which they promptly accepted.

We’ve all heard the doom and gloom stories and certainly the property industry has been lumbering along the bottom of the worst financial crisis to hit this country but it would seem that there really is a pent-up demand from people who are desperate to move.

The second thing that happened was when our local neighbourhood policeman stopped me as I was leaving home (I’m one of those people who, despite being innocent of any wrongdoing, immediately feels guilty when faced with a large copper wearing what look like size 14 shoes).

“Good morning, sir,” he said, rocking back and forth on his heels. Now, the fact is that we have exchanged the occasional pleasantry during the last few years that his beat has gone past my house and he knows what I do for a living. “And how is the overseas property market doing at the moment, sir?” he enquired.

“It depends which country you are thinking of,” I replied cautiously, in case I was giving evidence that could be used later.

“The fact is, sir, that during my long years of service in the Force, I have managed to accrue a small amount of funds from my monthly emolument and my good lady wife and I are thinking ahead to a time that is rapidly approaching when we might wish to retire to a more clement climate. I would appreciate your advice.”

In a remarkably short time, they have chosen a very pleasant apartment in Puerto Pollensa in the north of Mallorca. Why did they choose there? Easy access from the UK, first class facilities, excellent medical services and a great climate are pretty good reasons.

So, within a very short time, that’s two green shoots I’ve heard of that have managed to pop their heads above ground, despite the freezing financial climate. Whether these are signs of a fully blown recovery remains to be seen.

Stewart Andersen

Stewart has worked on a variety of magazines for more than 20 years as a journalist and editor, usually specialising on property and travel, both in the UK and overseas. His first book ‘Wild Thyme in Ibiza’ was published recently and this year he launched Homes & Travel

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