UK exchange rate boosts continental property market
According to Conti the overseas mortgage specialist, enquiries have shot up by 37% so far this year, when compared with 2013.
Conti pointed out that the strong pound is dropping tens of thousands of pounds off property prices in the euro zone. The pound to euro exchange rate is hovering near €1.27 at the moment, compared to last summer when the pound fell to a low of €1.14, a difference significant when applied to property prices.
For example, it means a €200,000 property in Spain is now almost £18,000 cheaper.
Spain is top of buyers wish lists, accounting for 51% of enquiries received this year. France is in second place, with 29% of enquiries so far this year, followed by Portugal with 12%.
However, France appears to be making a comeback, overtaking Spain in the third quarter with 35% of enquiries, compared with 32% for Spain.
Clare Nessling, director at Conti, said:
“With buyers’ budgets stretching that much further, the purchase of that place in the sun could seem even more tempting, especially when you compare the cost with overheated parts of the UK market.”