Tenerife: a buy-to-let ‘paradise’?

UK investors are increasingly selling-up in the UK and buying in Tenerife, claims Tenerife Property Shop…

As the Buy to Let markets become overcrowded in the UK and Ireland, report that an increasing number of these investors are selling property in the UK, and buying in Tenerife.

The Spanish property market has spiralled in value for many years, putting prices beyond the reach of many younger people.  Spain has more 22-30 year olds who still live with their parents than any other country in Europe. 

In order to reverse the trend, the government has introduced a raft of grants and incentives in order to encourage them to rent their own homes.  From tax rebates to monthly subsidies of over 200 euros and a handout of 600 euros towards a deposit, the government has been pulling out the stops.

Steady growth

The news of these incentives has reached the UK, and Buy to let owners are now cashing in their UK properties, in order to invest in the Tenerife long term rental market.  Landlords are particularly interested in areas of high population growth, and Tenerife has one of the highest in Europe. 

With a steady growth in rental demand, as well as more beneficial tax rates, this trend is likely to continue.  Figures from Kyero.com show that over the last year, enquiries for long term lettings have trebled in number. 

Mary Spencer, Director of Tenerife Property Shop, commented: “Buy to let has been becoming less lucrative in the UK for some time.

”The influx of these new investors into the Tenerife market has been building over several months, to the point where we can now identify it as an accelerating trend.  Despondent with returns in the UK, these investors are even calling Tenerife a ‘Buy to Let Paradise’.