Overseas property investors are once again eagerly eyeing up property in the UK following the Pound falling to its lowest level in 28 months.
On Monday, the Pound fell to two-year low against both the Dollar and Euro as new Prime Minister Boris Johnson outlined the renewed possibility of a no-deal Brexit.
Johnson has declared his desire to take the UK out of the EU on the current Brexit deadline, whether a new agreement can be reached or not. These declarations have been stepped up, with former environment secretary Michael Gove now responsible for no-deal Brexit preparations.
While the fall in the strength of the Pound is bad news for thousands of British holidaymakers who are currently preparing for their summer getaways, it’s rather better news for overseas investors looking to purchase a property in the UK at a low price.
The pound is now 22 per cent lower against the US dollar compared to the 23rd June 2016, the day of the EU referendum. This means international investors are now getting considerably more for their money when buying UK property.
And, according to Select Property, the political uncertainty surrounding the UK is unlikely to deter buyers from investing.
According to the company, this uncertainty is likely to only be for a relatively short period of time and that once the UK has left, there should be a gradual increase in clarity as analysts are able to more accurately predict what this change means for the UK’s economy.
International property investors trust the UK for its strength and stability and Brexit shouldn’t tarnish this reputation in the long-term.
Select also explains that canny overseas investors are aware of the huge undersupply of property in the UK. Right now, housing delivery in the UK needs to rise by 25 per cent just to meet the government’s target of 300,000 new homes each year by mid-2020. This is driving yields and growth for investors and leaving the EU will not reduce this level of demand for real estate in the UK.
Contact Halo Financial to find out how you can make the most of exchange rates.
Article published 31st July 2019