Improving exchange rates 'could delay property purchase'

 

Prospective expatriates looking to buy a home overseas may be biding their time to see whether exchange rates will favour them, according to a property website.

Sterling has improved against the euro in the last few months, despite falls this week, to stand at 1.1956 on July 8th 2010, Bank of England figures showed.

Robin Wilson, head of overseas property at Rightmove.co.uk, said the ability to make the pound go further will help would-be British expatriates to afford more expensive homes overseas.

However, "unless buyers had the foresight to buy euros eight months ago, I don't believe sterling rates will make a big difference in the short-term" he explained.

Mr Wilson added that rather than encouraging people to purchase homes abroad, the improvement in rates could persuade buyers to delay purchasing.

"Without time pressure, rising sterling rates may have the opposite effect as people sit on their hands and try to call the top of the market before splashing out" he said.

His comments come in light of a survey published by the Worldwide Property Group, which revealed that 65 per cent of respondents believe it is currently a good time to purchase a foreign property.