Pound tipped to strengthen against euro

Tuesday August 5th , 2008

UK-based property investors could be set to benefit from an increase in the strength of the pound against the euro.

According to Homes Overseas magazine, currency exchange group Mercury FX believes the euro will experience a decline over the coming months.

The publication believes this could be good news for people in the UK, as the recent strength of the currency has made the eurozone much more expensive.

Therefore, any slump should help to bring it in line the British pound, thus opening up markets such as Italy and Spain to property buyers in the UK.

Commenting on this development, Homes Overseas said: "The cost of buying property in the eurozone will fall if the UK pound does strengthen against the single European currency."

The strong euro has been widely cited as the reason for the growing popularity of Turkey among British holidaymakers in recent months.