Published today by
HIFX:
- Weak Pound means interest in France and Spain decreasing in favour of USA
- Emigration destinations Australia and New Zealand remain popular
- Brits struggling to sell UK homes have to put move overseas on hold
Interest in buying property in typical euro destinations such as France and Spain is waning as the poor exchange rate increases costs for British buyers. In contrast, the latest HiFX Monthly Global Property Hotspots Report reveals increased interest in American properties as buyers who are put off by the strong Euro are attracted by the weaker dollar and US property prices which have fallen by around 30% in the last 8 months. Traditional emigration destinations such as Australia and New Zealand are experiencing a seasonal upturn however currency specialist HiFX reports that, whilst interest is high, many would-be British émigrés are struggling to sell their UK properties and realise their emigration dreams.
According to the report, enquires for France and Spain have decreased by 11% and 12.5% respectively since March. Mark Bodega, Director from HiFX explains, “Sterling weakened significantly against the euro over recent months, reaching an all-time low of 1.2344 in April. This has increased the cost of property for people buying in sterling. However Spain has also been particularly badly hit, with talk of falling property prices, especially in the over supplied Costa regions, making new buyers wary of investing in the country. Property prices in France seem relatively stable although British buyers are negotiating hard to make up for the inflated costs caused by the weak pound.”
Interest in the US has doubled since April, following a turbulent year for the dollar in which wild fluctuation against the pound has seen it hit a series of all time lows. With the pound looking weak against the euro, canny investors are attracted to its strength against the dollar and property prices which have significantly fallen as a result of the US credit crisis. However, recent signals from the Federal Reserve have indicated that the Bank may pause from cutting interest rates, which had caused such fluctuation in the currency, as inflationary pressures begin to show signs of resurgence.
Popular emigration destinations Australia and New Zealand have continued to attract interest from Brits looking to move abroad. Bodega continues, “We often experience a seasonal increase in emigration at this time of year because as Visa applications made during the autumn and winter months begin to come to fruition. So, despite the pound looking relatively weak against both the Australian Dollar and New Zealand Dollar and there being a lot of fluctuation in both currencies, HiFX figures show that thoughts of moving to a new life overseas continue to burn strongly within much of the UK population. However the feedback that we are getting from our customers shows that, whilst there are lots of people in the process of emigrating, many are unable to make the final jump as they can’t sell their houses in the UK. For most this means they are unable to unlock the funds needed to secure their move overseas and they are being forced to delay.”
The HiFX Global Property Hotspots Report also reveals increasing interest in emerging markets such as Panama, Egypt and Brazil. This new focus is driven by investors on the look out for the next property hotspot, rather than wannabe holiday home buyers.
Sterling is currently trading at its lowest levels in 6 years against the Brazilian Real, after the Brazilian Central Bank surprised traders with a larger-than-expected interest rate hike in April. While experienced investors have not been put off by this, HiFX warns holiday home owners to be very careful about committing to emerging markets and exposing themselves to the wild currency fluctuation experienced in these developing destinations.
|
Country
|
Change on previous month
|
% of enquiries for March
|
% of enquiries for April
|
|
Australia
|
▲
|
9
|
10
|
|
Austria
|
▼
|
3
|
2
|
|
Bulgaria
|
►
|
1
|
1
|
|
Canada
|
►
|
7
|
7
|
|
Cape Verde
|
▼
|
2
|
1
|
|
Cyprus
|
►
|
1
|
1
|
|
France
|
▼
|
26
|
23
|
|
Italy
|
►
|
3
|
3
|
|
Morocco
|
►
|
1
|
1
|
|
New Zealand
|
▲
|
8
|
10
|
|
Other (incl.
|
▲
|
14
|
17
|
|
Brazil,
|
|
Egypt,
|
|
Panama and the Caribbean)
|
|
Portugal
|
►
|
1
|
1
|
|
South Africa
|
►
|
1
|
1
|
|
Spain
|
▼
|
16
|
14
|
|
Switzerland
|
▼
|
2
|
1
|
|
Turkey
|
►
|
1
|
1
|
|
UAE
|
►
|
2
|
2
|
|
USA
|
▲
|
2
|
4
|
Currency fluctuation over the last twelve months
|
|
12-Months
|
6-Months
|
3-Months
|
Spot rate on 19/05/08
|
|
GBP/EUR
|
-14.06%
|
-10.15%
|
-5.98%
|
1.2560
|
|
GBP/AUD
|
-12.96%
|
-10.13%
|
-3.93%
|
2.0735
|
|
GBP/NZD
|
-4.49%
|
-5.18%
|
3.62%
|
2.5675
|
|
GBP/BRL
|
-18.03%
|
-10.06%
|
-6.17%
|
3.2250
|
|
GBP/USD
|
-2.13%
|
-4.93%
|
-0.88%
|
1.9436
|
|
GBP/AED
|
-2.14%
|
-4.79%
|
-0.86%
|
7.1390
|
|
GBP/ZAR
|
8.14%
|
7.73%
|
-1.27%
|
14.8000
|