Brexit effect: +75% of real estate ads viewed from England

Brexit should materialize on March 29th and it would seem that this event is beneficial to the French market. In Paris, the number of real estate ads viewed from the United Kingdom increased by 75% over the last 3 months.

Real estate: France is the big winner of the Brexit!

As Brexit approaches, it seems more obvious that this event will have a considerable impact on the French real estate market. Indeed, while Brexit is officially scheduled for March 29, more and more British, but also French expatriates and nationals of other European countries, are already seeking to join France, even before the United Kingdom’s exit from the European Union is recorded. For example, at SeLoger, in the fourth quarter of 2018, we saw an exceptional increase in the number of ads viewed online from the United Kingdom. The real estate markets in Paris Region and Paris benefit most from this “Brexit effect”. For example, for housing located in the Île-de-France region, there has been a 17% increase in visits from the United Kingdom. In the capital, the increase in visits has even reached 75%. We have also seen a similar increase in other French regions, particularly in PACA (Provence-Alpes-Côte d’Azur) and especially in Nord-Pas-de-Calais.

Brexit: the great return of French expatriates to the Île-de-France region

This British appetite for French real estate can be explained in particular by their fear that real estate transactions in France will become more complicated after the United Kingdom leaves the European Union. It should be noted that 55% of the ads viewed by visitors from the United Kingdom are located in the Île-de-France region. For its part, Paris represents 28% of the real estate ads consulted from England. These figures can be explained by the early return of many French expatriates, seeking to leave the City to join La Défense or other business districts in the Paris region, before the Brexit was set up. SeLoger’s figures fully echo a recent study by Barnes, which found a “migratory phenomenon towards France” in the prestigious real estate market, following the British vote. Thus, in the second half of 2018, 5 to 10% of luxury housing sales in central districts were made to French people returning from London and Europeans from London moving to Paris.

Buy a property in London

Whether your expatriation to London is imminent or you have been there for some time, you may have nurtured the desire to become a homeowner by buying a property there. In any case, the steps leading to this type of investment in London include extensive research, advice from a legal representative and, of course, a significant amount of money.

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Before buying a property in London

Becoming a homeowner in London is an interesting investment, however, before you spend your time (the process can take up to three months) and money, think about the reason for your purchase. Have you been seduced by the cultural and professional diversity and dynamism of the city? Has the city become your second home? Or do you consider London real estate as a simple investment opportunity? By defining your objectives, you will choose the ideal property.

Also take into account the ideal area where your property should be located. London’s suburbs are more affordable and the houses are spacious. However, travel time to central London is long, often tedious and expensive. For more information on this subject, read our article on London’s neighbourhoods.

Important :

Even if you are not a first-time buyer, note that the conditions and rules for buying real estate vary from one country to another.

It is essential to know the additional costs that such a purchase will entail, including taxes. In England, for the purchase of a property worth more than 300,000, you will pay stamp duty (SDLT). If this is not your first purchase, tax applies to all goods worth more than £125,000.

Finally, create a payment plan and define the desired payment method(s). For some it will be a cash payment, while for others, the only way to become a homeowner is to take out a loan from the bank.

Important :

You can only buy a house in London if you have resident status.

Buying real estate in London

Once you have made your offer to the seller (or his real estate agent), he must draw up a legal contract in order to transfer ownership of the property to you.

Attention: whatever the amount you pay initially and whatever the discussions and promises made between you and the seller or between your real estate agents, no offer is legally binding until both parties have signed and exchanged the contracts. If you or the seller decide to withdraw at a later stage, the other party is entitled to compensation.

The final steps are simple and include cleaning the property, leaving previous tenants or owners, and handing over the keys.

Key points on rental buildings

  • Rental properties can provide a regular income,
  • Mortgages “to rent” are generally more expensive than residential mortgages and require a higher deposit (25% or more),
  • The lender will assess your future rental income to determine the amount it will lend you,
  • Before you enter into a rental property, consider other recurring costs, such as maintenance, insurance and agency fees.