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17th February 2009 | back to article listings BACK    print this article PRINT

One frequently repeated theme about overseas property buying by Britons is that the undertaking has become somewhat harder and less attractive in recent months. However, there are those who will suggest that this gloomy prognosis is far from representing the full picture.

The reason for the negative coverage, of course, has been the economic downturn. In part, this has led to many people not having the means to buy overseas. Some may have also found it harder to sell a UK property at a good price in order to fund an overseas acquisition. In addition to this, there has been the fall in the value of sterling against a basket of currencies as interest rates have plummeted and the perceptions of Britain's economic prospects have been judged harshly.

Buying in the US may have been partially affected by the lower value against the dollar, but equally there have been large falls in US property and the chance to pick up foreclosed bargains. In the eurozone, however, it has been suggested that Britons are finding the near parity of the currency with sterling a major strain.

Such a point was acknowledged by Elisabeth Dobson, head of private clients at currency exchange broker World First. She stated that the situation had been "pretty tough" and that in parts of France there had been a shift in sales from Britons to locals.

However, she suggested, this may now be changing. She commented: "We've certainly seen a drop-off on the overseas side of things in the last six months, but things do seem to be picking up. There's certainly a lot more confidence now than there was a few months ago, even some of our clients who maybe have been holding off buying a foreign property are considering it more now than they have done because there has been a little bit of sterling strength."

Such a point may be of particular relevance. If the fall in the pound against the euro has been a problem for some, its recovery could reverse the situation. Given that the scope for further rate cuts in Britain is more limited than it is in Frankfurt, this may be to sterling's advantage.

Others have suggested that interest remains high anyway. Property portal Homes Overseas released its latest table today of the most popular overseas property destinations on the basis of searches made on countries and individual dwellings. As well as confirming that the top ten still includes favourites such as France, the US and Cyprus, the company commented: "In spite of the global economic downturn, enquiries for properties overseas for sale remain firm, showing that the desire amongst Brits to own a home abroad remains as popular as ever."

So even if the numbers actually buying may be down, a continued wish to purchase and own overseas property - be it for business or pleasure - may point to a market still poised to do well over the next few years.

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