Euro woes and the negative news emerging from Europe is good news for British buying property or holidaying in the euro zone.
‘We have seen a flurry of clients taking advantage of the recent improvements in the sterling euro exchange rate which has improved by 1.9% since the beginning of last week,’ explains Elisabeth Dobson, head of private clients at World First foreign exchange brokers.
‘It’s not only improvements in the exchange rate that is driving British back into investing in property overseas, but confidence and spending is certainly on the up. Property related interest is steadily increasing, we have seen an increase of 4% in property related registrations since the start of the year.
According to data from their clients, France, Portugal and Italy still seem to be the top property spots for British buyers looking for a holiday home in the sun.
‘Rate improvements have pushed clients to fix the exchange in advance using “forward contracts”‘, explains Miss Dobson. ‘Clients are also entering into ‘currency options’ which allow them protection from the rate getting worse whist also allowing them to benefit of the rate improves, as many feel it will over the course of the year.
‘Many expats living in France and Spain are relieved by the rate improvement and have been fixing the exchange rate for their pension payments for the next few years. Even small improvements will make a huge difference to pensioners living overseas or those servicing an overseas mortgage.’