Continued strength of pound makes foreign property cheaper

  • 11 years ago
  • Uncategorized

A strong pound against the euro has made it a great time for Brits to find homes for sale on the continent, reports.

Minor fluctuations in the foreign exchange market can have large-scale impacts on property prices, with the higher values meaning it could often make the difference of thousands of pounds.

This has been the case in recent weeks when a strengthening British economy saw the pound rise from its previous rate of 1.157 euros to 1.185. Much of this was down to a strong and popular move by the Bank of England to keep interest rates steady across the board, whilst also reducing reliance on quantitative easing.

Whilst the difference in pound-euro rates may look small, it has a large impact when upscaled to property price levels. For example, a property in Spain or France, which may typically cost 150,000 euros, would have fallen from £129,645 to £126,582.

In light of the changes, it is thought that Brits on the cusp of buying a foreign property may find they are in a position to start making offers sooner than expected.

Commenting on the changes, financial specialist at Smart Currency Exchange, Charles Purdy, wrote on “Conditions have just got more favourable for British people buying property abroad.

“A stronger pound is good news for anyone buying abroad.”

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