Weak Pound Means it’s time to Invest in UK Property
Since June 23rd, when the UK decided they would exit the European Union; there has been a strong weakening of the Great British Pound. The falling pound was accelerated by Prime Minister Theresa May’s announcement that Article 50 would be invoked in March 2017. Therefore creating further downward pressure on the pound. Furthermore, the weak Pound means it’s time to invest in UK Property for international investors; benefiting from enhanced purchasing power, many investors are searching for property for sale at a relative bargain. The pound dropped to a 31-year low; which is very bad news for those in Britain as it inflates the cost of imported goods. But for the foreign investors and expatriates; now could be the most opportune time invest in UK property in a generation. Those living in countries and earning dollar-pegged currencies; such as the UAE’s Dirham, the move in the currency market means that their purchasing power is far greater, making it cheaper to buy property in the UK. Recent research shows that buyers started to return to the housing market in September with an increase in demand for the first time in seven months, according to a new survey by The Royal Institution of Chartered Surveyors. Furthermore, it said that members across most of Britain expected further increases in house prices during the next three months.
Property Prices Are Stable in the Regions
Property prices in the regional markets such as Manchester Liverpool, Birmingham, have been stable, RICS members forecast a modest fall in prices in London uncertainty following the Brexit vote and recent stamp duty changes that hit the top end of the market. Weak Pound Means it’s time to invest in UK Property, representing an excellent opportunity for value to enter the UK market. The strong track record of growth and a strong rental demand is attracting value investors looking to maximize their return on investment. Simon Rubinsohn, chief economist of RICS, said: “The market does now appear to be settling down following the significant headwinds encountered through the spring and summer.”
