How does the prospect of a 2017 UK election affect buying a property in France?
Teresa May has today called a General Election in the UK for June 8, 2017.
The exchange rate has strengthened and is now close to 1.19, equal to its highest level so far in 2017.
With Labour apparently in turmoil, the election is seen as an opportunity for Mrs May to impose her stamp on the Conservatives, rewrite the Conservative manifesto, increase the Conservative parliamentary majority from its current level of 16, and "have a clear run" at negotiating Brexit.
The market is clearly expecting this political move to be good for the Pound.
This means that the exchange rate is likely to reach and exceed 1.20, higher than at any other time so far this year.
Demand for property is already strong in SW France - some 35% up on last year! If you are a British buyer, now is the time to benefit from a stronger Pound.
If you are a British seller in France, talk to us. We can help with protecting you against an "improving" exchange rate.
The day after that Brexit divorce letter
Not the sexiest photo of the Dordogne we'll ever post!!
But maybe a reassuring one.
It's the car park at Bergerac airport.
The runway (not pictured) is currently being resurfaced.
The car park itself is again being extended; pictured. Some of us remember free parking in a muddy field.
That's a lot of fuss to go to if Madame L-P is about to deport us all. Surely she'd use buses for such a one-way trip?
And she'd need a much smaller car park afterwards......
And it's additionally reassuring for the future given that the parking spaces are being rebuilt with shelter for your car from the sun! Scorchio !😎
AND they have solar panels atop!!
Bergerac airport serves routes to Bristol, East Midlands, Liverpool, Stansted and more
Ex-pats are estimated to make up 95% of the passengers.
Holiday-makers, commuters, house-hunters, permanent residents who have already bought a house in south-west France. It's easy to get around.
Article 50 triggered and the exchange rate pops
Within a day of Article 50 being triggered and the UK formally handing a letter to the EU, the exchange rate moved from 1.1450 (see arrow below) to just below 1.17, a move of 2%.
It just got cheaper for Brits to buy in Euroland.
America calling, calling America; France beckons !!!
Bienvenue, Fellow Americans! You have chosen an excellent moment to consider making your French property dream a reality.
Low prices, great Dollar/Euro exchange rate, low borrowing fees, great property choice…
Exchange rate news
Following Teresa May's comments on Tuesday, the Pound initially dipped and then recovered yesterday in one of its strongest days since 1998 against a basket of currencies.
Against the Euro, the rate has stabilised - at least for the short term at around 1.16, close to midway between recent highs at 1.19 and lows around 1.11.
In terms of Brexit, we are only at the stage of opening skirmishes, with the UK government seemingly setting out its its negotiating stall in a comparatively aggressive way, stating that the EU "needs" the UK as a trading partner more than the UK needs the EU, and in turn that a trade war, or at least the inability to play nicely in terms of reciprocal trade agreements, would be to the greater detriment of the EU than the UK. This has inevitably provoked a rebuke in the European press, citing "Little England" mentality.
The market tends to set psychological "rounded" levels for currency exchange rates. With the Pound/Euro at the moment those levels seem to be 1.10 and 1.20. The rate is fluctuating*, but once breached, is expected to break out one way or the other.