"Expats looking to invest in UK property can benefit from the dual advantage of a stagnant property market stifling prices, and the increased buying power of their money."
But just as a weak pound has made it more expensive for you to buy dinner or hire a car, it has made UK property far more affordable to potential buyers who are remunerated in other countries.
Expats looking to invest in UK property can benefit from the dual advantage of a stagnant property market stifling prices, and the increased buying power of their money. Here’s a closer look at what a difference a weak pound can actually make to overseas buyers.
Euros
On 22 June 2016, the day before the EU referendum, £1 was worth €1.30, according to the currency exchange website xe.com. This means that a property worth £750,000 would have cost an equivalent of €975,000.
On 1 August this year, £1 was worth €1.10, which means that a property worth £750,000 could now cost an equivalent of €850,000. That’s a saving of €125,000.
US Dollars
On 22 June 2016, £1 was worth $1.47, which means that a property worth £750,000 would have cost an equivalent of $1,102,500
On 1 August this year, £1 was worth $1.21, which means that a property worth £750,000 would cost an equivalent of $907,500 – a saving of $195,000 because of the exchange rate.
We work with a number of brokers who have seen a considerable increase in enquiries from UK nationals living abroad who want to take advantage of current exchange rates to invest in property. At a time when the domestic property market is subdued, this increased activity from expat buyers is a welcome boost to business. So, think about how you could make the most of the weak pound to open the door to more expat clients.
