If you are purchasing property in Spain, you will no doubt be pleased that the clear election result has led to a sharp rise in the value of the pound. This, in turn, reverses the fall in value of the British currency against the euro and dollar, a trend that started with the Brexit referendum result some years ago. The recent rise in the exchange rate of sterling, however, greatly enhances the buying power of Brits looking to purchase property in countries like Spain.
Being the biggest group of foreign property buyers in Spain, the British are yet again able to look forward to improved opportunities when investing in real estate in the country. With the Conservatives here to stay and previous uncertainty surrounding Brexit lifted, purchasers who previously put their plans on hold are now getting ready to go ahead with confidence.
Other reassurances brought about by the Tory win:
- The Pound Sterling jumped back up to around 1.20 GBP/EUR upon the election result, the highest level since late 2016. The situation is tipped to improve in the light of the fact that the financial markets (stocks, bonds, forex) have all welcomed the news
- A stable government for the next five years means less of the kind of uncertainty that has been undermining the British economy since the Brexit referendum
- Boris Johnson’s majority is large enough to avoid a hard Brexit. This should ensure a softer separation from Europe and avoid undue economic damage in the short term
- Although Brexit is definite, Johnson’s popularity means he is able to be more generous when it comes to questions of freedom of movement and expat rights in Spain
The focus is now firmly on Boris Johnson, amidst the expectations that he will try and push his Brexit deal through parliament before Christmas. Should this happen, the pound will potentially be propelled still higher and in so doing further improve opportunities for property buyers in Spain.
It’s been a long time coming, but with confidence now creeping back amongst British property buyers in Spain, there are many exciting opportunities to be had. Sourcing your perfect property in the new year is highly likely to ensure you greater buying power along with a more promising investment climate than we’ve seen in many years. Contact us now for more information.