What Does The Value Of The Pound Mean For You
The UK Government’s decision to instrument the biggest tax cuts in 50 years has caused shockwaves to ripple through its financial markets. Although this was always going to be seen as a gamble, the effects are something to be noted and understood. With the value of the pound dropping, we want to guide you through its affects and explain what this means for you.
Since Friday’s announcement from the Chancellor, the value of the pound has dropped a further 5% against the US dollar. The fall was predicted to further, prior to Friday due to the cost of living crisis and rising inflation. It is unclear whether the pound will fall further or experience a resurgence. This all falls to the decisions made by the new Prime Minister, Liz Truss in the following weeks or months. However, the current pound-to-dollar conversion is set to stay low, especially in the short term.
What does this mean for International Buyers?
The UK property market has seen an evidential influx in International buyers during the past few years. The market has grown in its appeal as the country is now seen to offer great opportunities to its potential investors. The market stability and steady house price growth have allowed for its appeal to strengthen also. Now the falling in the value of the pound adds to its appeal. As the pound drops it becomes worth less against other currencies. This subsequently means that investors will get more for their money within the UK market, further strengthening the value of the UK market to those overseas.
What are the next steps?
If acted upon now, investors can take advantage of increased affordability and discounts. These current market trends subsequently make the UK market great grounds for investment opportunities and portfolio growth. The UK market is evidentially a strong island of investment as over £90.7Bn worth of property in the UK is owned by those overseas (Benham & Reeves). Partnered with the increased and continual regeneration of cities all across the UK strengthens its appeal further. Manchester, Liverpool, and Birmingham are products of this with billions of pounds being pumped into these cities annually. LPC Invest specialises in properties within the North West of England, a place presenting significant capital appreciation and high yields. This knowledge allows our team to guide you to your next step.
The sooner you act, the better. With the LPC Invest team waiting by their phones ready to advise you on the next steps of your property investment journey, now is the perfect time to invest. Contact us today to find out more.