London’s housing market continues to grow in spite of the weak pound, meaning that as an overseas buyer, now is a great time to invest in property in the UK capital.
In June, the UK will vote on whether to leave the European Union (termed “Brexit”). While an exit from the EU looks unlikely, the uncertainty has weakened sterling against strong currencies like the Malaysian Ringgit or US dollar, with sterling having fallen 10% against the dollar since June 2015 and now in its weakest position since 2008.
Nicholas Spencer, Henry Wiltshire’s Sales Manager says, “As Brexit looms large & the increased uncertainty not only of the national vote, but also of the effects of the outcome, Sterling continues to, if not tumble, slide at least.
With the average London property price at £550,000, there are great opportunities for any international investor looking to buy in London, for the next 8 weeks, at least; but be quick; after the vote, the uncertainty will dissolve and the pound will rise!”
As a direct response to the sliding pound, some luxury properties in London are now nearly fifteen percent cheaper in dollars than they were eighteen months ago.
Nicholas Spencer says, “With the recent slump in the strength of the pound, it’s not hard to see the benefits to international investors. For a buyer in Malaysian Ringgit, looking at Battersea perhaps, a £1m purchase would cost them RM 767,357 less; a saving of £138,000; that’s not small change in any language!”
Coupled with the weak pound is the fact that the London property market continues to grow, seeing roughly a 10% rise in the last quarter alone.* Equally, with the pound expected to stabilise again after the referendum, overseas investors are looking at a win-win situation, where not only can they buy property at an excellent price, but their investment will gain significant value as the pound regains strength.
In spite of the uncertainty around the UK’s own position, HSBC’s decision to retain its London headquarters shows that the Far East’s business market still has confidence in the city, leading from the front and setting an example for other Far East investors.
Many overseas investors are already taking advantage of the current financial situation. Visit our London property pages and see how you could benefit too.