The number of British and Irish residents planning to relocate to Lanzarote has jumped by 35% in the second quarter of 2008.  That’s according to figures released by leading Lanzarote property portal, Lanzarote Guidebook, suggesting that the darkening economic situation in the UK and Ireland looks likely to lead to a growth in the number of people seeking a brighter future abroad.

An analysis of the enquiries for property for sale in Lanzarote received between April and June this year reveals that long term rental enquiries have jumped dramatically compared to the first quarter of 2008, now accounting for almost 44% of all enquiries.

Most of those looking to escape rising household bills and falling disposable incomes are seeking apartments to rent on a long term basis in the island’s main resort of Puerto del Carmen, which apart from being the epicentre of both the British and Irish expat communities on the island is the main hub for employment opportunities for most new arrivals.

With a cooling housing market and rising rents in the UK, rental accommodation in the resort and across the island in general is certainly a more cost effective alternative – with one bedroom apartments starting from around the €500 per month mark (currently around £400).

Lanzarote also offers much cheaper food, fuel and utility costs.  As you might imagine, heating bills are non-existent!

There has been a 35% fall in mortgage approvals across the province of Las Palmas, leading to a fall in demand for property for sale and lower prices, as local banks tighten their lending criteria.

The bulk of prospective buyers are currently seeking property at the cheaper end of the market – with 77% of all enquiries received focusing on listings priced below the €300,000 mark.

Geographically, Puerto del Carmen remains the most sought after location for British and Irish based overseas buyers – accounting for 41% of all enquires received.