EU referendum: Brit owners and buyers of European holiday homes adopt a "watch and wait" approach to Brexit

William Turvill
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Holiday home owners "watch and wait" for the EU referendum outcome (Source: Getty)

Brits with holiday homes in Europe are adopting a "watch and wait" approach to the EU referendum. Hopefully from their sun loungers.

A new poll this morning showed that while those intending to vote Leave or Remain is around even, there has been a reduction in those who believe the UK will vote to remain in the EU.

And, according to online trading services provider EasyMarkets, Brits who have, or are looking for, holiday homes in Europe are keeping a close eye on the referendum and its potential impact on currency exchange rates.

Read more: Belief that the UK will vote to remain in EU plummets

Nikolas Xenofontos, director of risk management at EasyMarkets, described it as a "watch and wait" approach.

He said the impact of exchange rates is being felt already because of the "uncertainty around the whole process".

“Sterling has already been influenced by the Brexit debate and will continue to be as the referendum approaches," Xenofontos said.

"There’s a real sense of caution afoot at the moment. We’re noticing everyone from holiday home buyers (or would-be buyers) to business owners is taking a 'watch and wait' approach and there are going to be some interesting market movements as 23 June approaches."

Read more: Brexit uncertainty could lead to more expensive travel

In recent months sterling has weakened and recovered on more than one occasion as a result of Brexit developments, EasyMarkets noted.

The website said a second home buyer who exchanged £200,000 on 19 February would have received €258,906 in exchange.

However, two days later - when London mayor Boris Johnson backed Brexit - this would have equalled €256,213.

Read more: Mayor of London Boris Johnson will back Brexit

Xenofontos said: “Brexit may have a big impact on the purchase of overseas property. Many potential buyers are pausing their plans until later in the year, waiting to be certain of the outcome of the referendum before they go ahead and invest their capital in a second home abroad.

"Turbulent exchange rates and the uncertainty over factors like freedom of movement are likely to put the brakes on the overseas property market for the coming months, so far as UK buyers are concerned.”

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