The Impact of Brexit on Property Buyers
What impact has the UK’s decision to leave Europe had on the Brits desire to buy an overseas home? French client Home Hunts, that has 34 agencies across France, reports that the quality of buyers has improved but the quantity has declined slightly. A property client in Austria, Kristall Spaces, who develops ski properties has reported continuing strong sales from British buyers.
Home Hunts Director Tim Swannie says; “The people who are looking seem to be serious and ready to make decisions quite quickly. Some clients want to buy their holiday home now, before the UK leaves the EU, in the hope that being a homeowner in France or Spain will help when it comes to their future freedom of movement in Europe.”
Simon Atterbury of Kristall Spaces predicts “no real change for UK buyers in the short term as we negotiate the exit and trading relationship with the EU and property purchases concluded before the exit will not be affected retrospectively.”
Having the most impact is the exchange rate but this is being eased by FX suppliers providing some good deals and some banks offering ‘back to back’ mortgages, which means that cash buyers can deposit their money in Sterling with the bank and then take a mortgage of the equivalent amount in Euros/Dollars to buy their property. The beauty of this kind of agreement is that once the pound gains some strength again, whether that is in one year or ten years, you can then pay off the mortgage in full at that point without penalties.
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