Things are moving the wrong way for sellers (Image: aire images via Getty Images)
Brits selling homes in Europe could receive almost £9,000 less when bringing the proceeds back to the UK because of exchange-rate movements, new research has found. Analysis by Newspage, sponsored by Cosmos Currency Exchange, looked at how changes in the value of sterling against the euro affected the amount received from a €250,000 property sale.
On November 14, 2025, when £1 bought approximately €1.1314, converting €250,000 would have produced around £220,965. By July 16, 2026, when the exchange rate had moved to approximately €1.1788, the same €250,000 would have been worth only £212,080. That represents a difference of £8,885 in just eight months, despite the property’s euro sale price remaining exactly the same.
The figures highlight the potential currency risk facing British expatriates returning to the UK and selling property abroad, such as European holiday homes or investments — and families disposing of properties inherited following a death, experts said. Tony Redondo, founder at Newquay-based Cosmos Currency Exchange, said the figures demonstrate why sellers should consider the currency implications of a property sale early in the process.
He said: “Currency volatility can quietly gut a European property sale and when the proceeds come back into sterling, Brits can lose thousands. Treat foreign exchange as part of conveyancing, not an afterthought at the point of transfer. High-street banks routinely quote margins of up to 4% off the interbank rate, plus fees; on €250,000, that’s serious money.
“A specialist broker with a local euro collection account lets notary proceeds land in Europe without being converted at whatever the spot rate happens to be that day and expensive post-Brexit transfer fees. Waiting for a better rate is just hoping with a nicer name and completion dates rarely line up with a good one. If the price is agreed, a forward contract fixes your rate for completion. If funds arrive in stages, convert in tranches. Set a limit order at your target and pair it with a stop-loss. Know your number early, especially with probate so you’re not dumping euros in a panic.”
Impact increases as transactions get bigger
The impact increases sharply with the size of the transaction. On proceeds of €500,000, the difference between the two exchange rates would have been approximately £17,770. On €1 million, it would have reached around £35,540.
There’s also an effect for those inheriting property abroad (Image: Imgorthand via Getty Images)
Prem Raja, head of trading floor at Currencies 4 You, advised homeowners to treat currency management as part of the property-selling process rather than leaving it until completion.
He added: “The research shows how exchange-rate movements can materially change the sterling value of a European property sale, even when the euro sale price is unchanged. Sterling has generally been stronger against the euro this year and that trend could continue, particularly with uncertainty surrounding the European outlook. Anyone selling or inheriting property in Europe should consider their currency position early.
“Once the sale price is agreed, leaving all the proceeds in euros means effectively taking a view on the market. Sellers could fix a rate with a forward contract, convert in stages, or use market orders to target a better level while protecting against further adverse movement.
“They should also consider the opportunity cost of waiting. Exchange-rate gains are uncertain, whereas the interest available once the money is converted into sterling may be more predictable. Rather than trying to pick the perfect day, establish the minimum sterling amount required and protect it.”
Inheritance issue
Harvey Dhillon, founder and CEO at Zmartly, said that if someone inherited a property in Europe, the exchange rate that counts for tax is fixed on the date of death and on the day the sale contract is made.
He continued: “If you’re UK resident and sell a home you inherit, your starting value is the home’s worth at the date of death, turned into pounds at that day’s rate. Keep a record of the rate on the day you agreed your purchase contract, and if you inherit, get a written valuation as at the date of death.
“Once the sale contract is made, a UK resident’s taxable gain usually uses the exchange rate on that day, not the day you change the money, so holding off on converting changes the pounds you get but not the gain. I’d accept that it moves, because nobody knows where it goes next.”
Timing is difficult
Dave Huggett, founder of Lucid Foreign Exchange, said no one could call the timing.
He added: “A sale price agreed in euros is a fixed number, but its value in pounds is not, and it moves the whole time the sale is going through. A shift of around 4% on a €250,000 sale is nearly £9,000, and nobody agrees to that as part of the price. Anyone selling property in Europe, or due to inherit it, should treat the conversion as part of the sale.
“Work out before you exchange contracts what the sale needs to bring back in pounds, and once it’s agreed a forward contract lets you fix that rate while the legal work finishes, turning an unknown amount into a known one. On waiting for a better rate, nobody can call the timing and anyone claiming they can is essentially guessing.
“Waiting isn’t neutral, and leaving it to chance on a market where you have no advantage costs more than it saves. Inheritance complicates this because probate can run for months and you don’t control the sale date, so plan the currency side early and fix in stages rather than holding out for one day.”
Deposit issue back in UK
Jamie Elvin, director of London-based Strive Mortgages, said anyone using the money to buy in the UK could end up with a smaller deposit.
He added: “The research shows how a property can sell for exactly the price you expected in euros, yet leave you with almost £9,000 less when you bring the money home. For someone using those proceeds to buy in the UK, that could mean a smaller deposit, a higher loan-to-value mortgage and potentially fewer rate options.
“I wouldn’t delay a house sale simply because I hoped the exchange rate might improve. That turns a property decision into a currency bet, and the rate could move further against you.
“Work out how many pounds you need, compare the rate and fees you’ll actually receive, and speak to a currency specialist about ways to manage the risk once a sale is agreed. If the proceeds will fund a UK purchase, build some exchange-rate movement into your budget before committing to the next property.”
