The doom and gloom that was portrayed as the ‘inevitable’ result of a vote to leave the EU is proving to be little more than scare tactics by the ‘Remain’ camp. That doesn’t presuppose the ‘Leave’ camp told the whole truth by the way.
But the UK economy has proven to be more robust than most gave it credit for. Retail sales were up 1.4% in July; well above expectations. Consumer confidence dived in the immediate aftermath of the vote to leave the EU but recovered somewhat in August. Britain’s unemployment data for July was markedly better than the gloomy forecasts and, most importantly for those seeking property investments in the UK; the property market is still active.
104,200 property sales completed in July, according to HMRC. That is 16,000 fewer than July 2015 but a much smaller decline than most analysts had predicted. And whilst estate agent, Countrywide, is predicting a slower pace of house price growth in 2016 and a margin dip in 2017; it is far from the abject disaster predicated in the pre-referendum melee.
But the real boon for those seeking investments in the UK property sector is the slide in the value of the Pound. Sterling is down by 13% against the US Dollar, down by 11.5% against the Euro and weaker by similar percentages against most other currencies in the wake of the Brexit vote. Let me re-phrase that. As a result of the Pound’s decline, UK properties are between 11% and 13% more affordable to overseas investors.
That immediate advantage is a real benefit when investment yield is so very hard to come by and the lure of UK property at more affordable prices is something few could have expected a year ago or even three months ago when all the polls suggested the Remain vote would win the day.
Taking advantage of that exchange rate doesn’t mean you have to wait for the right property in the right location. You can secure your Sterling on forward contracts based on the current exchange rate in advance of finding the desired property. Many are doing likewise and each dip in the value of the Pound brings a new wave of opportunist investors preparing the ground for their move into UK property. For more information about how you too could enjoy the best GBP- USD exchange rate for 30 years, contact Halo Financial Ltd and speak with one of their expert consultants.
For further details contact +44 (0) 20 7350 5474 or request a call back here