News: The AIPP Top 10 Reasons why Brits Will Continue to Buy Property in Europe
It has been an eventful month for the UK following the unexpected Leave vote in the EU referendum: the resignation of David Cameron, the appointment of a new Prime Minister, falls in Sterling but with the Article 50 triggering on hold - for now.
Despite some political and economic uncertainty, we think the British appetite for a foreign property remains as high as ever - but now it's about timing. So we have put together a list of the top 10 reasons we think the British buyer market will remain positive for the foreseeable future:
1. It will take over 2 years for the UK to leave full EU membership under terms set out in Article 50 of Lisbon Treaty.
2. Full UK exit from EU is unlikely with perhaps the Norwegian or Swiss model of EU access and free movement of people perhaps most likely - both being highly prosperous countries - like the UK.
3. 35,000 Brits forecast to buy a foreign property this year, up from 30,000 last year (source RMO).
4. Brits have such deep-rooted passion to own property and to enjoy life outdoors with some sunshine, decent food and drink. It rains a lot in the UK!
5. Yes, the reality is that the Pound currency falls to Euro and Dollar may well deter some of the British buyers on a very tight budget - for now - but they will not go away and are looking to see what happens with prospect for the Pound to rise over a few months, after the summer.
6. UK has the 2nd largest GDP in Europe after Germany, still with positive growth - even with BREXIT. The UK has strong market fundamentals and British Property is expensive - much cheaper to buy a holiday or retirement home abroad!
7. 'You can't take it with you!' The UK has a massive baby-boomer generation wanting to retire and they are in a hurry to enjoy their 'Autumn years' - they have no mortgage, good pension and savings. They are cash buyers. It is, perhaps, the younger potential holiday home buyer with less cash (with a UK mortgage, perhaps needing a 2nd mortgage on holiday home), who may take some time to consider their options into the autumn and quite possibly the new year.
8. British confidence in the European economy - many Brits have been concerned about Southern European economies and the need for further bailouts and what this may require Brits to fund, going forwards. With the prospect of this being removed, confidence in spending British money in the softer Southern European economies (in particular) is returning.
9. Online foreign property searches are not witnessing any significant fall-off with the largest international property show still looking very strong with exhibitors in the UK's 2nd largest city, Birmingham, end of September.
10. The UK has had its EU Referendum and is now quickly adapting to the 'new reality' with good economic indicators. But the rest of Europe - particularly France, Germany (elections in 2017) and Netherlands must now address their own internal EU issues - and this may will lead to market and buyer uncertainty. We wish them well in finding their own answers. But Britain is still Great - even though it has rained a lot this summer with terrible flooding - creating even more UK buyers of a foreign property somewhere sunny.
AIPP seeks to engage UK Govt to protect British owners of a foreign property
AIPP CEO, Peter Robinson, has written to new Secretary of State for Exiting the European Union, Rt Hon David Davis MP.In this letter, AIPP seeks engagement with HM Government (HMG) to protect the rights of British owners and future buyers of a foreign property, with a focus on the EU.
AIPP has also prepared and sent a 9-page document identifying the 20 key points at issue to assist HMG and to set out how AIPP members could input to the BREXIT process, helping to steer positive outcomes for British property owners in the EU and the trade that supports them.
If you would like to get involved in support of this initiative (either as a British owner of a EU property or member of the trade – AIPP member or not), then please contact our CEO directly: firstname.lastname@example.org
Click HERE to read the AIPP document sent to Rt Hon David Davis MP: BREXIT: Property & associated issues for British citizens owning property in the EU. The 20 key points at issue.
Article courtesy of CEO Peter Robinson, AIPP.