Words: Ashley Rigg
Published: 4th May 2011
*Spanish roadshows "an insult" say action groups
The
European property road show tour organised by the Spanish authorities to promote investor confidence has been branded “in insult” by groups representing Britons caught up in legal and financial difficulties with their properties in Spain.
The tour which began in London today aims to encourage individuals and institutional investors to buy some of backlog of unsold homes in an attempt to “normalise” the housing market.
Development Minister José Blanco believes the exercise “will highlight the strengths of our economy [and] transparency and legal certainty of our planning legislation".
However, protest groups such as the Finca Parc Action Group and the Spanish Bank Guarantees Petition are calling for the road show to address outstanding grievances such as the alleged refusal of certain Spanish banks to honour aval bancario, or bank guarantees.
Keith Rule, a spokesman for Spanish Bank Guarantees Petition told Global edge:
“This is an insult to all those of us who stand to lose so much due to the corruption and negligence in the Spanish Property Sector. The Spanish Property Sector certainly does not have the transparency or legal certainty [which Mr Blanco is portraying in the road shows]”.
“Sr. Zapatero, Sr. Blanco and Sra. Corredor need to understand that for thousands of victims of the Spanish Property Sector there was and still is no ‘transparency or legal certainty’.
Comment
Although the Spanish authorities have begun to clean up their act in recent years, there are still many international buyers who have suffered and are still suffering from the corruption of the past. Housing amnesties like the
recent one on the Costa Del Sol are beginning to address the issues but arguably more needs to be done.
The issue of “bank guarantees” is just as serious. Government time and resources could arguably be better spent forcing banks to honour their agreements and by creating a national index of actual sold prices to improve transparency in the market.
Source: Global edge
User Comments
I think the Spanish authorities should fly in this Josefina Cruz as guest speaker for these roadshows, as she obviously has a way with words.
http://www.telegraph.co.uk/property/expatproperty/8519390/Spanish-courts-rule-in-favour-of-minister-accused-of-defaming-Britons.html
What a joke.
She makes out British expats to be latter day vikings, raping the landscape and ignoring the "clear and easy to understand planning consent" laws.
Her comments are ill conceived, deeply offensive and will undo any of the progress recently made in terms of PR for overseas investors thinking about putting cash into Spain.
Mark Goodwin,
First Property Choice
Luckily here in Galicia Northwest Spain we have neither been affected by landgrabs nor corruptión and certainly not in rural and rustic housing that I sell.
Lugo (where I am based) is the only Spanish province where prices actualy rose last year.
If only the banks would get their hands out of their pockets and lend money the market would be marvelous.
Mark Adkinson,
Galician Country Homes
Spanish valuation of property is guess work as
they have no record or register of sold prices.
Many buyers are put off by land grab tactics that
the government in Spain sanctions.
I think Spain and Britain have become good 12 month rental markets - good buy to let opportunities.
can get a mortgage.
Linda Fennell,
property-brazil.co.uk
I have empathy for the innocent buyers who have fallen foul of corruption and also the tenious bank guarantees issued. The Government needs to get things in order here in Spain before extolling the virtues of the Spanish housing market abroad.
Institutional investors will require more tangible evidence of the market and prices before they get involved at any significant scale.
As you mentioned, thing are improving but the changes are not far reaching enough yet.
Mark Goodwin,
First Property Choice