Strong pound and weak euro boosts spanish property

Photo: Virany

Sterling has enjoyed a strong year so far, growing against the euro, despite Bank of England Governor Mark Carney's recent refusal to say when rates might rise again. His comments followed a disappointing set of earnings results, although unemployment rates did fall to 6.8 per cent, a move that some speculated would prompt the first announcement of a rate hike.

The Governor insisted that any rises would not be rushed, as the UK economy continues to grow with minor setbacks. Overall, though, the picture is a healthy one, while on the other side of the English Channel, expectations are growing for a rate cut by the European Central Bank. With the ECB not ruling out further monetary easing, the euro dropped against both the pound and dollar this week.

The figures are good news for British buyers planning to buy Spanish property, says the Overseas Guides Company, who reported a "return of confidence" in the country's market in the first three months of the year.

"The pound's ongoing strength since the start of 2014 and the UK's booming housing market and buoyant economy will have contributed to such a bullish first quarter," commented the company's Head, Angelos Koutsoudes.

“We see no signs of this slowing down, especially with the pound at a 16-month high against the euro – £1 was worth just €1.14 for a period back in August, but after steadily climbing it's hovering around €1.22.”

The pound has also steadily gained against the US dollar, with mixed data across the Atlantic not sparking strong growth.