Monday, 27 June 2016

Monday, 27 June 2016

The Brexit Vote

Quite an eventful week – described my many as seismic. I think that may people are shell-shocked and there are a lot of emotions running high at present.

But what happens now? For those people who were planning to buy in France, what do they do?

Some clients are adopting a “wait & see” approach, whilst some are saying their plans remain in place, (some have even advised the leave decision has spurred them on even more to make the move). In fact, our 1st post BREXIT sale has just been agreed, to UK buyers who voted “Leave”!

A big factor for many is of course the £. The headlines on Friday were all about the massive losses, but most commentators failed to factor in the significant rise in the £ during the previous days when a remain vote looked probable. The truth of the matter is that the £ is trading at a higher level, even post BREXIT than it did throughout 2011, 2012, 2013, & 2014. So, historically not bad. (See chart below).

Nothing much will change on this side of the Channel relating to house purchase. In fact, the change and uncertainty for me is most likely on the other side of the channel in the UK, where there is going to be significant pressure on politics, services, taxation etc where reform is clearly now essential.

An interesting comment over the weekend came from another client, who said, “the referendum result has confirmed for me that I will be moving to France sooner rather than later”.

I also see that there is growing support for another referendum! There is even talk that because the actual voting figure for BREXIT was only 37% of those entitled to vote, that the intention of the people may not be implemented by the Government, plus talk of Nicola Sturgeon blocking UK’s departure…….

Crazy times.

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