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Fol­low­ing the UK’s de­ci­sion to leave the Euro­pean Union, Oliver Mere­dew ex­am­ines how the ex­change rate has been af­fected and con­sid­ers the pos­si­ble im­pli­ca­tions for those plan­ning a prop­erty pur­chase in France

Living France - - LES PRATIQUES -

48.1% re­main. The out­come rocked the whole of the UK and trig­gered David Cameron’s shock res­ig­na­tion.

Iron­i­cally, the pound ac­tu­ally rose after vot­ing closed on the night of 23 June, with a GBP/EUR peak of 1.3136 be­ing recorded. But as the re­sults started rolling in and leave op­ti­mism snow­balled, the pound plum­meted against the euro and vir­tu­ally all other peers. Within a few short hours GBP/EUR had slumped from 1.31 to 1.22 and the pair­ing has con­tin­ued soft­en­ing since, with the pound hit­ting a rate of 1.16.

WHAT DOES BREXIT MEAN WHEN IT COMES TO BUY­ING A PROP­ERTY IN FRANCE?

The im­pact of the Brexit vote on French prop­erty pur­chases is ex­tremely un­cer­tain at the mo­ment, but the de­ci­sion is likely to change the state of play.

For starters, the sig­nif­i­cant de­cline in the pound/euro ex­change rate means that any­one look­ing to in­vest in over­seas real es­tate will find that their funds won’t stretch as far as they would for­merly.

To il­lus­trate this point, be­fore the vote to Brexit, £250,000 would have equated to €330,000. Im­me­di­ately after the de­ci­sion to leave, that same £250,000 would only be worth €305,000 – €25,000 less. So on a tech­ni­cal ba­sis, buy­ing French prop­er­ties has be­come more ex­pen­sive. This is be­cause

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