According to the data from Fexco Corporate Payments, Britons spent 60% more in sterling terms on foreign property outside the Eurozone in the first half of the year compared with the same period in 2016.
The analysis, of more than 1000 property transactions made by UK customers through Fexco Corporate Payments*, suggests Britons are eschewing traditional favourites like Spain, France and Portugal for more far-flung destinations where their Pounds go further.
Demand was strongest in Thailand, with British spending on Thai property rising 84% on the level seen in the first half of 2017, and a whopping 348% on that seen before the Brexit referendum in first six months of 2016.
The number of transactions also rose by a third (33%) between 2016 and 2018, with Thailand’s appeal as a destination being boosted by the launch of flights from the UK to Bangkok by the low-cost airlines Eurowings and Jet Airways.
Other countries to have seen big increases in demand include the United Arab Emirates – where British spending on property in the first half of 2018 was up 50% on its pre-referendum level – Israel and Australia.
By contrast, Britons’ spending on properties in the Eurozone fell by a fifth (21%) between 2016 and 2017, before recovering in the past 12 months. In the first half of 2018, total spending on Eurozone property was up 39% on its pre-referendum level but the total number of transactions was up just 4%.
The data comes as sterling continues to slide against the Euro. Last week the Pound slumped to just €1.10, 5% less than the €1.16 it hit in the chaotic few days following the UK’s vote to leave the EU in 2016.
David Lamb, head of dealing at Fexco Corporate Payments, explained: “Europe’s proximity and familiarity mean it has always been a firm favourite among Britons buying a place in the sun. But the Pound’s continued weakness against the Euro is slowly eroding the appeal of Eurozone properties.
While no-one chooses to buy a home abroad based on the exchange rate alone, it is a major factor for anyone spending tens or hundreds of thousands of Pounds. As a result many strategic buyers are now looking beyond the traditional European hotspots to countries which may offer better value.
With the prospect of a hard Brexit looming ever larger, the Pound is likely to remain under pressure in coming months – so anyone planning to invest abroad should consider a currency hedging strategy to ensure they will be protected if sterling falls further.”
