Banks under pressure to reduce prices on unsold properties in Spain

October 3, 2016

The Spanish property market has been recoverying slowly over the last year, prices have stabilised and in some areas are showing increases. However recent reports suggest that the country still faces a large backlog of unsold property, banks still own homes from struggling developers and repossessions.

In an effort to reduce bank’s real estate exposure the Bank of Spain has  reportedly from the beginning of this month (October) put lenders under pressure to reduce the number of properties they presently own, banks therefore may be forced this Autumn to slash the prices of these unsold or repossessed homes.

British buyers are historically the largest group of foreign buyers, whether this will continue is to be seen, the biggest impact on the numbers of British buyers so far this year has been Brexit and the weakening of the pound, the strength of buying and that of the pound go hand in hand.

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Estate Agent Talk

Are ‘for sale’ boards becoming obsolete?

Earlier this year, Westminster Council announced that it would apply to ban estate agents from displaying sales boards outside residential properties in the local area; now, Epping Forest Council is the latest to follow suit. With this in mind, Jack Malnick, Property Expert and Managing Director at Sell House Fast has shared his thoughts on…
Read More →
Christmas Decorations - Good or Bad for Selling
Breaking News

A More Affordable Christmas for Homebuyers

The latest research from award-winning mortgage adviser, Alexander Hall, has revealed that – despite the government failing to leave any affordability-focused initiatives under the tree in the recent Autumn Budget – this Christmas is shaping up to be a far more positive one for the nation’s homebuyers, as borrowers entering the market today are benefitting…
Read More →
buying at auction uk
Breaking News

Most active property markets in 2025 revealed

Scotland and Yorkshire home to UK’s most active property markets in 2025 The latest research from The Property DriveBuy reveals that Scotland and Yorkshire have been home to the UK’s most active housing markets in 2025, with Birmingham, Somerset, Cornwall and Buckinghamshire also ranking within the top 10. The Property DriveBuy has analysed the latest…
Read More →
Estate Agent Talk

The Renters’ Rights Act: turning change into advantage

The private rental sector is entering a period of unprecedented change. For estate agents, the Renters’ Rights Act 2025 taking effect from May is not just another piece of legislation – it will reshape how you advise landlords, manage tenancies and maintain compliance. Mustafa Sidki of the real estate team at Thackray Williams explains how…
Read More →
Christmas Decorations - Good or Bad for Selling
Breaking News

Lower mortgage rates help Santa deliver 600 more toys this Christmas

With Christmas fast approaching, falling mortgage rates could be doing more than easing household finances this festive season. In fact, if Santa himself were to secure a mortgage on the North Pole today, he would be saving more than £2,000 a year on his monthly mortgage repayments compared to taking out the same mortgage at…
Read More →
Christmas Decorations - Good or Bad for Selling
Breaking News

Has your property paid for Christmas this year?

The latest research from Yopa has revealed that, despite a quieter year for the UK property market, the vast majority of homeowners will have effectively seen their property pay for Christmas, based on the increase in the average house price versus the average festive spend. Yopa analysed house price growth since the start of the…
Read More →