The pound reacted positively to Theresa May’s speech yesterday, in which she offered to work with Jeremy Corbyn and the Labour Party to reach a workable version of Brexit before the next “crashing out” date of 12th April.
Hence we are still at the upper end of the EUR/GBP rate we’ve enjoyed for the past two years. Even if her new spirit of cooperation works and we get a deal through, the fall out from all this is going to take many years to sort out. Not just in terms of ironing out the details of the UK’s future relationship with the EU – the Withdrawal Agreement barely scratches the surface of this – but also for our political parties. Will there be a functional Conservative Party? I don’t imagine for one minute that the “hard Brexiteers” will be satisfied with any deal. Will The Independent Group merge with the Lib Dems, and if so where will that leave the Labour Party?
For political buffs it will be fascinating, although personally I’d rather be watching it from a new home in the Mediterranean. To that end, unfortunately the doom merchants have been thoroughly enjoying themselves again. We heard this week that British drivers will need a £5.50 permit from the Post Office to drive in the EU if there’s No Deal, which seemed to be regarded by some as close to the end of the world. And the time it takes to procure such a document? About five minutes. And the hideous lengths you have to go to? A trip to your high street (or fill it out online). You can pick up your suntan lotion while you’re there. That also takes about five minutes and costs about £5.50 too.
So the “worst case scenario” procedures that in a few months we would regard as totally normal, are being touted as some sort of national disaster.
We’ve become used to everything being completely effortless. Changing your currency even for a purchase as important as a house, for example, takes just a few minutes. At least it does with us!
So I hope readers will continue to see a property abroad as a fantastic opportunity, rather than any kind of problem.
We do, however, expect more currency market volatility. And since the markets appear to believe No Deal is a receding possibility, a softer Brexit may be priced in, in which case the pound may not go much higher for a while. I would therefore urge you to call your trader today, on 020 7898 0541.
