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International Property Investors Look to UK Market Following Latest Sterling Fall

The UK property market is now at its most affordable for foreign investors since October, as the value of sterling fell ahead of Theresa May’s Brexit speech later on today.

Brexit Currency Fluctuations

The UK property market is now at its most affordable for foreign investors since October, as the value of sterling fell ahead of Theresa May’s Brexit speech later on today.

The exchange rate stood at $1.1986 on Monday morning, declining by 1.6% over the weekend, following the announcement of the Prime Minister’s speech late last week.


Due to take place today, Theresa May is expected to lay out the Government’s plans for the Brexit negotiations.


Early speculation has indicated that Mrs May will make it clear that the UK is willing to accept a ‘hard Brexit’ in order to control freedom of movement, leave the single market and negotiate individual trade deals with other countries.


A resulting decline in the markets has left the pound standing at the lowest level since the flash crash that was seen in October last year, where the value of sterling against the dollar dropped to $1.1841.


Last week, property agent Savills reported an 8% increase in profits for 2016, driven predominantly by the investment from overseas property investors in the wake of the 17% decline in the value of the pound since Brexit.


The firm indicated that the increased affordability brought about by favourable exchange rates had resulted in a surge of interest from abroad, as investors looked to capitalise on the bargains available in the UK property market.


In December, deVere Mortgages also revealed that international interest had risen in the face of the declining pound, with enquiries rising by 45% in the final quarter of 2016.

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