The Plunging Pound’s Effect On UK Property
26th February 2020
Since the start of 2019, housing prices in London have fallen by 4.4%, the biggest drop since August 2009. All major cities in the UK are experiencing similar value drops.This is mainly due to 2 important factors – the chaos caused by Brexit and the weakening pound.With this devastating duo sending the country into turmoil, many potential local buyers are playing the “wait-and-see” game. They want to see the pieces fall into place first, before taking action.Since demand from buyers is reduced, market forces naturally dictate that prices will fall.So when local UK buyers pull back, it’s time for foreign buyers to step up.There presents a once-in-a-lifetime opportunity for overseas investors to profit from the panic, and swoop in to secure UK properties at unbelievably low prices.A UK property that will set you back £5,000,000 in 2016, can be purchased for around £3,000,000 - £4,000,000 today (depending on factors like location and your local currency exchange rate).Little wonder that overseas investors from all over the world are targeting UK properties. If you’re not, you should be!
So will the UK property market recover from this setback? Even with all the turbulence in the UK today, it still remains one of the world’s most important business, property, sports and tourism market. In the past, most recently the 2008 recession, it has always managed to bounce back stronger than ever.There’s no reason to believe that this current crisis will end any differently.The real question is: When will the market recover, and when will property prices start increasing?No one can say for sure, but experts predict between 3-5 years before the market starts mounting a comeback. This means that investors have a limited window to “save up their bullets”, and invest in undervalued UK properties to reap the full upswing benefits.
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