GBP/EUR exchange rate rally tipped to boost number of Brits buying European homes

Richard Way, Editor at The Overseas Guides Company today says:

"Now that the pound/euro rate is edging towards €1.19 - compared with the dismal €1.14 rate available at the end of July - this is expected to prompt Brits who spotted some of the bargains currently available in the Eurozone to look seriously at buying or moving abroad."

"Continued upward pressure on UK house prices and more finance options beginning to creep back into the market could also encourage buyers to look at equity release for a foreign purchase or, for retirees, selling up and snapping a more affordable home in the Eurozone for cash."

"In the past month, I've spoken to a nurse from London who has recently bought a home to retire to in the Costa Blanca, having been out-priced by the UK market, while a family from Sussex looking for a second home in France returned from their holiday in the Charente at the end of August having seen their idyllic second home there, which they have made an offer on."

"As the industry on the Continent checks their bulging inboxes after the usual summer shut-down, chances are it could be a busier one than last year."

Latest exchange rate market action

Turning to the markets on Tuesday we see it is risk-on.

Shaun Osborne at TD Securities says:

"Robust Chinese data and moderated concerns on a Syrian attack have instilled a positive tone in European markets this morning, lifting most European equity indices up over 1% and tightening peripheral Eurozone yields against core German yields.

"EUR/USD has not participated in the optimism in Europe however, with a disappointing French industrial production figure helping to cap gains over the past two trading days. It’s also worth noting that German-US yield spreads, while slightly tighter over the past two days, do not corroborate the move higher in the FX spot rate."