Thousands of British homeowners could have their beachside properties demolished under new plans by the Spanish Government to clear nearly 500 miles of coastline of illegal developments. Under the new initiative, to be unveiled formally tomorrow, Spain’s Socialist Government plans to pull down homes, chalets, hotels and swimming pools along a 776km (480mile) stretch of coastline.

The areas involved are those most popular with Britons, including the entire Mediterranean coast from Barcelona in the north to Marbella in the south, the Canary Islands and the Balearic Islands, including Majorca.

The Government said that it would not move to expropriate properties in the first instance. Under the €5 billion (£3.5 billion) scheme, it is hoping to negotiate with homeowners and regional authorities over the sale of properties deemed illegal, the pro-government daily El PaÍs reported.

“We intend to negotiate, not move directly to expropriate,” said Antonio Serrano, secretary for Biodiversity and Land at the Environment Ministry.

Too close for comfort

Is the wrecking ball about to smash into swathes of properties built too near the beach?

BACKGROUND

• Pensioners’ pain in Spain

• Stormy outlook for British homeowners in Spain

• Spanish property doctor

• Homes under threat as Spain moves to clear coast

• Tenerife attracts the champagne set; but has bargain property prices

Related Internet Links

• The lowdown on Spanish property

BACKGROUND

• Costa bravo

• Spanish property doctor: Beware of buyers who flash the cash

• The surreal deal

• Amor at first sight

BACKGROUND

• Fortune blows on Spain's windy city

• A sunnier retirement

• Ask the Experts: The estate agent

BACKGROUND

• Is the global property boom set to end?

• Hablamos Ingles

• Shelter from the sun

• Buying on the Spanish islands

• Still plenty to gain from a home in Spain

Related Links

• Gloom for Britons as Spain’s properties drop

• Economists warn of fall in house prices

The British Foreign and Commonwealth Office estimates that more than a million Britons live in Spain for part or all of the year. They have bought tens of thousands of homes along the coastline, pumping billions of pounds into the Spanish economy but changing previously unspoilt areas for good. Under 20-year-old legislation, Spanish beaches are public property and construction is banned within 100 metres (330ft) of the coastline. The law has been flouted widely by construction companies and local authorities, and bribery has been commonplace. The environmental group Greenpeace has said that the Spanish coastline is disappearing under concrete at the rate of three football pitches a day.

The Government refused yesterday to discuss the specifics of its plan, prompting confusion on all sides. An official, speaking on condition of anonymity, played down the effect on British homeowners. “We’re not talking about mass demolitions here,” he said. “It would be done on a case-by-case basis, and only in isolated cases.”

Environmental groups welcomed the Government’s initiative in principle, but said that they feared it could end up being an empty gesture. “We think it’s a very positive move, but one that comes far too late in the day,” MarÍa José Caballero, of Greenpeace, said. “At this stage, the plan is only a declaration of intentions, with no concrete time frames or agreements with the regional governments.”

The Government has admitted that it must secure the consent of Spain’s powerful regional governments and the town halls for the plan to proceed. Property brokers on the Spanish costas also questioned whether the proposals would be put into action, but said that it could still hurt investment by Britons and other Europeans. “Can we really see 800km of Spanish coastline being attacked by cranes and swinging balls and demolition crews?” asked Chris McCarthy, of Viva Estates in Marbella. “It’s just impractical. In the grand scheme of things, €5 billion is nowhere near enough money.”

Other groups representing small property owners on the Spanish coasts were equally bemused by the plan, suggesting that it was merely part of the Government’s drive to be reelected in March. “This is a lot of hot air,” said Charles Svoboda, a former Canadian diplomat who runs Abusos Urbanisticos – No! “It’s a bit of electioneering to get the environmentalists to feel happy about the national government. The amount of money they’re talking about is derisory. It’ll take more than €5 billion to do what they are proposing here.” Even before the latest initiative, many Britons had feared that their homes could be declared illegal by the courts and demolished. During the latest construction frenzy on the Spanish coasts, many developers went ahead without the proper permits, confident that they would be able to secure them later.

After a massive corruption scandal toppled the Marbella city government and spread to other resorts, those permits have been far harder to obtain. As a result, two big property developers have got into serious financial trouble and many Britons have found themselves in legal limbo. Controversial “land grab” laws in Valencia have also made it possible for the local authority to hand over private property to developers, in a process many say amounts to illegal expropriation.

The Foreign Office said that it was unsure what impact the proposals would have on British homeowners, but that Britain would “engage with the Spanish Government and the regional authorities on any policy which had implications for British citizens who bought property in good faith”.

Times recommends

• Second homes: credit crunch casualty or money-spinner?
• How I built my own sliding house
• Top 10 incentives for house buyers