The UK housing market has seen better days. Like in many other countries, rising interest rates (currently at 5.25%) have driven up mortgage borrowing costs, resulting in the largest decline in the UK housing market in the past 14 years.
However, the battle against inflation and the increasing cost of money is not unique to the British Isles; Spain is also contending with the rate hikes introduced by the European Central Bank, raising interest rates to 4.5%. In addition to monetary constraints, similar to Great Britain, Spain's real estate market is also facing high inflation, which has already significantly limited households' savings capacity.
At the European level, inflation continues to impact households, gradually reducing their ability to save, affecting consumption and their capacity to buy homes. In the UK, this has already generated concerning data in the real estate sector, with a decline in housing demand, exacerbating the rental market situation.
The cost of renting a room has risen to over £1,000 per month, which is approximately €1,170. This is partly due to the scarcity of rental properties on the market, leading to a 15% increase in room rental prices in the capital compared to a year ago.
High mortgage interest rates, reaching their highest levels in 15 years, have decreased landlords' rental income, prompting property owners to prefer selling.
This situation presents a significant opportunity for Turkish buyers looking to invest in foreign real estate and generate high rental returns.