5th
Oct 2022
The UK’s economic crisis which caused a historic fall in the pound has undoubtedly profited foreign investors.
Research carried out by an investment management services company analysis of the average cost of residential property throughout the UK and London, and how the cost has changed since January this year.
It then looked at the cost when converted to currency of ten of the most high-profile property-buying nations.
The research shows that:
Ø Its buyers from the United States who have seen the biggest boost to their property purchasing potential within the UK market;
Ø Back in January of this year, the average UK house price of £272,833 equated to $369,825 US dollars at a rate of 1.36 USD to the pound;
Ø Fast forward to today and the average UK house price has climbed by 7.1 per cent to £292,118. However, with a weak pound now commanding just 1.08 dollars, the average UK home is now worth $314,932;
Ø This means that US buyers in today’s market are securing themselves a 14.8 per cent discount on the average price of a UK home;
Ø Across London in particular house prices have climbed by 4.9 per cent so far this year, but despite this U.S buyers are now paying 16.5 per cent less than they were at the start of the year;
Ø Homebuyers from the UAE are also considerably better off when purchasing a UK property, with the average UK home now 14.5 per cent more affordable due to the weaker pound, while in London this discount sits at 16.2 per cent;
Ø Hong Kong homebuyers are now paying 13.9 per cent less for the average UK home in their native currency and 15.6 per cent less in London versus the start of the year, with buyers from Singapore also seeing a considerable boost to property affordability as a result of the weaker pound at 9.5 and 11.3 per cent respectively.
A spokesperson for the company says: “The current forecast for the UK property market may be starting to worry the nation’s homeowners, but one person's loss is another person’s gain, particularly when it comes to the fluctuating value of bricks and mortar.
“However, while opportunistic domestic investors are still waiting in the wings as house prices climb ever higher, a weakening pound has presented a great opportunity for many foreign buyers, who are now considerably better off when buying compared to the start of the year.
“With the government’s latest economic interventions doing little to reverse the declining strength of sterling, buyers from the US, UAE and Hong Kong, in particular, are set to keep on saving when it comes to a UK property purchase.
“This should help further bolster a rejuvenated level of foreign demand following pandemic restrictions. However, this activity is likely to be concentrated within specific areas, such as prime central London, and so it will do little to help negate the uncertainty that is currently hanging over the wider UK market.”
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