Uncertainty for Overseas Holiday Homeowners
The starting gun for negotiations on Brexit is set to be fired Wednesday 29th March when Prime Minister May triggers the process by officially notifying the European Union that the UK is leaving. The EU announced it was ‘ready and waiting’ and Donald Tusk, the EU president, tweeted that draft Brexit guidelines would be presented to the 27 EU member states ‘within 48 hours’ of the UK triggering article 50.
Although article 50 allows two years to complete negotiations, once they get under way, they are expected to allow just 18 months to reach an agreement in order to allow the terms of exit to be ratified by the European Parliament, the UK Parliament and the required majority of EU states. David Davis, the Brexit secretary, said he expected the negotiations to be ‘the most important… for this country for a generation’.
Although many Brexiteers welcomed the announcement the uncertainty around the terms of Brexit persists for many groups including holiday homeowners. The Association of British Travel Agents (ABTA) noted in their Travel Trends Report 2017 that while Brexit did not have an immediate impact on holiday taking during 2016 the subsequent fall in the value of the pound will have instantly hit holiday makers spending power. This could affect both the frequency and duration of overseas holiday homeowner’s trips away, and could also make it more difficult for overseas holiday home owners to let their property to British holiday makers.
Nevertheless, the ABTA does see positive signs for 2017, especially for the western Mediterranean, as capacity moves away from regions perceived to be more turbulent and towards familiar destinations perceived to be safer. Spain is expected to be 2017’s top performing destination. This could mean a very different experience of the impact of Brexit on holiday home owners dependent on the holiday home location, with those in more traditional holiday destinations finding it easier to let their property.
As negotiations on Brexit begin to get underway there will no doubt be continued uncertainty and concurrent fluctuations in exchange rates, all of which are likely to affect holiday makers and overseas holiday homeowners. This is just the start of what could prove to be a bumpy journey.
To find out more about how Intasure can insure your holiday home abroad, please contact us.
bbc.co.uk/news/uk-politics (Correct @ 21/03/2017)
abta.com/TravelTrendsReport (Correct @ 21/03/2017)
*The opinions and views expressed in the above articles are those of the author only and are for guidance purposes only. The authors disclaim any liability for reliance upon those opinions and would encourage readers to rely upon more than one source before making a decision based on the information.