How The UK General Election Could Affect British Citizens Buying Property in the EU
If you are planning on buying a second home in the EU or planning a permanent move to Europe you may be thinking about how a change in government would affect your dream of buying property in Spain, France, Italy or Portugal.
Next week’s election results could have a big impact on people planning on buying property abroad.
When Teresa May called a snap general election, very few people thought that she would fail to get elected. With less than one week to go to election day however, the polls are now suggesting that she may not get the majority victory needed to secure an outright win. This could mean a Labour government or Labour coalition being in number 10.
So how will that effect your plans to buy property in Europe?
The main two factors to be considered are:
- Which party will be best for the UK economy and how this will affect the price of sterling against the euro (the exchange rate).
- Which party will negotiate the best deal for your rights when living or staying in Europe.
The effect of the General Election on Pound Sterling and how this could affect your overseas property purchase price
Every day a new poll indicates that the Conservative’s lead is narrowing. Some polls suggest their lead is now as little as 3% and predict a hung parliament. These continually changing predictions has created uncertainty in financial markets, which has seen the pound steadily drop over the last few weeks.
Currency markets are always adversely effected whenever there is political uncertainty- this was evident during the UK’s EU referendum when the pound steadily lost against the euro during the run up to the result but bounced back once the out vote result was announced and accepted.
The City of London would like to see Teresa May continue as the Prime Minister, as it considers that she would strengthen the and economy and pound. With recent events and polls showing she does not have the support of the country she once had however, this has lead to rumours of her standing down if she does not get a majority. This would result in further on-going uncertainty and further fluctuations in the strength of the pound.
Most city experts predict that, in the short term, the re-election of the Conservatives would steady the markets and see the pound strength against the Euro. In the longer term however it is more difficult to predict. Teresa May’s tough stance on a Brexit deal has been well documented and she has continually stated that she will walk away from Europe and come away with no trade deal if she does not get the deal she wants for the UK.
Business leaders and city expert have called this scenario “falling off the cliff edge” as they predict this will be devastating for the UK economy and the strength of the pound.
Conversely Labour leader Jeremy Corbyn has stated he is keen to secure a trade deal with Europe and keep managed movement of workers to secure the economy of the UK which, in the longer term could strengthen the pound.
What is apparent, regardless of which party wins the election on June 8th, is that anyone buying a property abroad should ensure that they use a currency exchange specialist to ensure they get the best exchange rate and use the right currency strategy when sending money overseas to make sure they get the most from their budget.
For more information on why considering exchange rate and currency strategy is so important during uncertain financial times see the following article: The best time to exchange your currency when buying abroad.
If you would like details of a recommended currency specialist who will be able to assist you with all aspect of currency exchange and talk you through different strategies available and how to get the best exchange rate, contact Total Buying Abroad on 01244 478911 or email email@example.com
What effect of the General Election on rights of UK citizens living in the EU
It is clear that no one knows what will be the outcome of the Brexit negations and how this will affect the rights of UK Citizens wanting to live or stay in the EU. The calling of the general Election on June the 8th has however made the two main parties provide some clarify on their respective positions.
Teresa May for the Conservatives has so far refused to secure the rights of EU citizens to remain in the UK following the UK leaving the European Union. Many people believe she is doing this to secure a good negotiating position while other UK Citizens living in Europe are unhappy she is bargaining with their lives.
Jeremy Corbyn for the Labour party has offered a much softer approach, guaranteeing the rights of EU citizens to stay in the UK who moved here before Article 50 was triggered. He has also stated that Teresa May’s approach of a potential “No Deal” will not be good for the UK.
Whichever political party you support, the result of the election on June 8th 2017 and its knock-on effect with Brexit is hard to predict.
Many many people from the UK have taken the plunge and bought property in Europe during the last year, deciding to take their lives and futures into the own hands and to just go and live their dream and not be held hostage to potentially years of political wrangling.
If you are also thinking of living the dream and buying abroad and would like any further information about buying property in Spain, Portugal, France or Italy contact Total Buying Abroad on 01244 478 911 or at firstname.lastname@example.org.
If you would like any recommendations for reputable law firms, currency specialists, estate agents or mortgage advisors just ask! We will be very happy to help.
Contact Total Buying Abroad on 01244 470 339 or at email@example.com.
Article published: June 3, 2017