Drastic currency slide is making living in Spain expensive
Brits who own property in Spain have seen their spending power reduced in the past few weeks as the value of sterling falls against the euro. The Daily Mail reports that ‘every day since the currency plunge began at the start of the year more than £10 has been wiped off the annual income of a typical expat living in Spain.’
Keep reading to learn more about how the falling pound will affect you if you’re thinking of travelling to Spain or buying a Spanish property.
Value of the pound has fallen 7 per cent since January 2013
The value of the pound has dropped by 7 per cent against the euro and U.S. dollar since January. And, after ratings agency Moody’s recently downgraded the UK’s credit rating, it prompted a fresh sell-off.
The Mail reports that in early January 2013, one pound would have got you €1.24 or $1.63. Now, however, it stood at just €1.15, the lowest for 18 months, and $1.52, a near three-year low. In 2007, when the banking crisis began, £1 would have got €1.43 and $2.04.
This fall has affected many hundreds of thousands of Brits who rely on income and pensions paid in sterling to survive. Nearly 400,000 Britons live in Spain, 152,000 live in France and just under 30,000 live in Italy.
Currency specialists say the average amount claimed by a British couple living in Spain is £628 a month. At the start of 2013 this would have been equivalent to €778. Now, however, they would receive just €722 – a drop of almost £50.
The Mail also reports that this fall in the value of sterling will also affect anyone with a mortgage on a European home. In total, the estimated 500,000 Britons with an overseas mortgage in Europe will have to find an extra £216 million a year.
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