The euro strengthened against sterling over the week. It was no major achievement: Every currency strengthened against sterling, which was dragged lower by the expectation of higher UK interest rates fading ever further into the future. The pound fell by an average of -1.1% against the other dozen most actively-traded currencies. It lost a fraction more than that, just over a cent and a half, to the euro. The euro did nothing to distinguish itself. Indeed, the Spanish general election last Sunday served to highlight the political risks to European currency union. Just a couple of months after Portugal delivered a messy election result Spain did the same, with no overall majority and the prospect of anti-austerity government policies. There were no Euroland economic statistics of any consequence and there will not be any on the coming week either. Look for more of the same.
Sterling vs €uro breaks 1.37 Interbank for the first time since December 2007....what a great opportunity to buy!
Daily Telegraph.....Crunch time for France over 'illegal’ tax on Britons' second-homes French could be forced to reimburse more than €500 million to non-resident property owners who have let out or sold their properties in the past three years
France could be about to lose its war on British second home owners after the European Union’s senior legal adviser said that its tax on non-resident property sales is almost certainly “illegal”. Her conclusion could force France to reimburse more than €500 million to British and other non-resident property owners who have let out or sold their properties in the past three years. However, Britons are being advised that there is a catch — the French quietly passed a law meaning that those who sold their properties last year must apply for a refund by December 31. The same fate awaits Britons who rented their French properties out in 2012 if they fail to apply for a rebate before the end of the year, legal advisers have warned. About 200,000 non-resident British property owners in France were affected when in 2012 the Socialist government of President François Hollande imposed a 15.5 per cent “social charge” on rental income and capital gains from the sale of second homes — a measure which it said would bring in €250 million a year. Tax on rental income rose overnight from 20 per cent to 35.5 per cent, while capital gains tax on property sales rose from 19 per cent to 34.5 per cent.
Saint-Hilaire-du-Harcouët, Manche, Lower-NormandY. Asking price:€459,000 (AROUND £359,000). A magnificent manor house dating back to 1509 in excellent condition offering approximately 450m2 (4,843 sq ft) of flexible living space with 8 main rooms including 5 bedrooms upstairs. The whole set in land of about 5.9 hectares (14.57 acres) of delightful countryside.
Map by French Property News