A recent survey by A Place in the Sun
of their exhibition attendees yielded some very positive post-referendum results. It seems that serious potential property buyers have not been deterred from finding their dream place in Europe or the USA.
Serious interest in buying property abroad
Of the A Place in the Sun Live!
attendees surveyed at the most recent show, 95% were first time visitors, compared with 80% at the London exhibition in May, and a very healthy 71%, intend to buy a property abroad within a year, compared to the 60% pre-referendum. 28% said they were thinking about buying abroad, considerably more than the 17% figure from May. At the May exhibition, 80% of attendees surveyed considered themselves to be serious about buying a home abroad and only 19% were just thinking about it.
The top five countries listed were Spain, France, Portugal, Italy and the USA. It will be interesting to see if appetite for owning a holiday home in the US is affected by the recent presidential election.
Falling budgets from exchange rate volatility
The average budget given by potential property buyers in May was £190,000, falling to £175,000 in October. While this figure is likely to reflect differences in demographics and property investment budgets between London and Glasgow, it is fair to say that the ever-fluctuating exchange rates between the Pound and its major currency exchange partners, the Euro and the US Dollar, have played a part in this.
“Here’s where currency exchange plays a major part in a successful overseas property purchase,” explains Mimzee Brewer, overseas property specialist at currency experts, Halo Financial.
“A budget of £190,000 would have cost €298,383 on 19th June, before the UK EU Referendum, but then shot up to €318,858 in only a month, as a result of market uncertainty and volatile currency exchange rates. That €20,475 is a significant sum of money, and could make the difference to you being able to get the property you really want, within your budget. It’s also a similar sum to the May-October difference in budget.”
“With the UK Chancellor of the Exchequer, Philip Hammond, saying that the weakening of the Pound has been the main factor in the slowing forecasts for the growth of the UK economy in the Autumn Statement, it is clear to see how powerful the impact of fluctuating exchange rates can be.”
The importance of advice
47% of London visitors and 46% of Glasgow attendees came to the show to get advice from experts and help with the overseas buying process. This is a key benefit of property exhibitions of this kind and offers the opportunity for potential overseas property buyers to meet face to face with and get one to one guidance from trusted, professional advisors.
About Halo Financial
Halo Financial is a leading UK foreign exchange brokerage, offering a comprehensive range of services to individuals and businesses since its inception in 2005. The business prides itself on offering a flexible and personalised approach for each of its clients, simplifying the seemingly complex foreign exchange market to maximise savings in currency transactions and make money go further.
Halo Financial specialises in managing currency risk by offering hedging and risk management strategies for both individual and corporate clients, with vertical expertise in numerous industry sectors such as international trade, financial, education, migration and overseas property. Staffed by qualified technical analysts, the company is authorised by the Financial Conduct Authority and HM Revenue and Customs.
Halo Financial received the OPP Gold award for Best Supporting Service, the Gold Award for Financial Support and Innovation from Re:Locate Magazine and has 5 out 5 star customer gold merchant status via independent review website, Feefo.com.
+44 (0)20 7350 5473
Senior FX Analyst