As many European governments tackle their deficits, second home owners especially those based overseas have become easy targets for tax increases and as a result many are selling up and returning their assets to the UK.
Recent research from HiFX found that one in 10 (11%) Brits who own a property abroad are looking to sell, and 34% are trying to shift a property in Spain where house prices are down 25% since their peak in 2007.
Many Brits already in the process of selling a property overseas can’t afford to see the value of the Euro fall further and are using a forward contract to lock in the exchange rate on the proceeds of the sale in case the Euro depreciates further which many analysts believe is likely.
Mark Bodega, director of HiFX, said: “Brits are worried that if the situation in Europe gets worse, the value of their Euro holdings will plummet and in the worst case scenario the Bank will collapse and they will lose everything.”
On 1 January 2011, UK savers were given £85,000 worth of protection per person, per firm in accordance with an EU directive. The new EU laws have also enforced a standard compensation limit across Europe at €100,000.