How UK housing market trends might influence European property markets in 2024

“There are many benefits to owning property abroad vs. in the UK, which is why, despite the various ups and downs, people continue to want to buy in and move to mainland Europe”
– Christopher Nye – Your Overseas Home

Whether you’re selling up to move or retire abroad full-time, buying a holiday home with the family, or investing in buy-to-let properties abroad, the UK housing market can have a direct impact on the overseas buying market.

For example, UK housing price trends, changing housing policies and fluctuations in the pound significantly influence investment patterns and property values across the Channel and in mainland Europe.

When property prices in the UK increase and become less affordable for domestic buyers, it naturally leads them to look for more financially viable opportunities abroad, particularly in areas known for lower property prices, such as Spain, Portugal and Greece.

Similarly, economic shifts – including fluctuating interest rates and currency exchange rates – influence overseas property investments. A strong pound, for instance, might encourage UK buyers and investors to venture into the European market as they can get more value for their money.

Here are six ways that the UK housing market could affect overseas property purchases in 2024:

Price trends:

Fluctuations in property prices in the UK can greatly influence decisions to invest in property overseas. For example, if housing prices in the UK increase significantly, investors might look for more affordable opportunities in foreign markets. On the other hand, a slight drop in UK property prices could drive more buyers to purchase domestically due to increased affordability. This has a knock-on effect as it could potentially reduce demand for properties in mainland Europe.

Economic factors:

Changes in economic conditions, including shifts in interest rates, inflation and currency exchange rates, can greatly influence

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