WE'VE never had it so good said David Vaughan, the London representative for leading Balearic estate agent, Kuhn and Partner, yesterday. British property buyers are heading to Majorca with a spending power never witnessed in the UK real estate market before, and Vaughan said yesterday that it is not the numbers, but the huge buying power clients have. Vaughan said that the strength of the Pound, which was trading at 275 pesetas in the city yesterday, is obviously having a marked effect, but the overriding influence is the feel good factor in Britain. The Halifax estate agent increased house prices by 16 per cent on Thursday as the property bonanza gathers momentum home and away.
House prices in Majorca rose by just under 30 per cent last year - but it has by no means put off potential buyers - and the Majorcan property market has gone crazy since the start of the New Year. Vaughan explained yesterday that last year, although the British economy was in good shape, the Pound was fluctuating against the Peseta, at around the 230-250 mark and, while there was plenty of interest in the Majorcan market there still was not the confidence; people were sitting on the fence and missing out by the time they had finally decided to make a move. January, Vaughan said, is normally the quietest time of the year, but buyers have stopped pontificating and they are going for it. Everybody enjoyed the millennium party, they seem happy with the Chancellor and the long term picture of the British economy is rosy; they've come down off the fence and are jumping on planes to Majorca, Vaughan said.