Inside Out reveals Spanish property problems

2nd April 2008

Inside Out reveals Spanish property problems

A BBC Inside Out investigation has uncovered sales staff at one of Europe's largest international estate agents lying and misleading potential clients into investing in overseas property.

Macanthony Realty International (MRI) sales staff were secretly filmed promising huge growth rates in Spanish property prices and large rental yields despite the Organisation for Economic Co-operation and Development recently warning that Spanish property prices could be over-valued by as much as 30%.

One commission-only salesman told investigators from BBC East's Inside Out programme that Disney were planning to start building near to a development he was showing them.

This is untrue. Disney told the BBC they have no plans for Southern Spain.

He also told programme makers that he knew the Spanish property market well having been working for MRI for three years when, in reality, just two months earlier he had been selling cars in Stockport.

The report also features the plight of Norwich residents Keith Roads, who has cerebral palsy, and his partner Dawn Donovan, who face losing £60,000 after being persuaded to buy a property.

Dawn was led to believe by MRI staff that the rental income would cover the mortgage payments. It hasn't happened and she now faces repossession.

MRI is run by Darragh Macanthony who, at 31, recently became the youngest chairman in the Football League when he took over at Peterborough United.

The company refused to give an interview. They said they have thousands of happy clients and that any act of misconduct "will be thoroughly investigated and appropriate action taken".

They deny issuing assurances or guarantees on investment returns or rental income.

 

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