Weak pound opens door to Ex-Pat investors

    Doormat and open door
    As originally published in Financial Reporter.

    If you have just returned home from a holiday overseas, you will know all too well about the impact of the struggling pound. 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.

    Mortgages
    This website is for authorised intermediaries only. This information has not been approved for use with customers and is not intended for public or customer use. Your clients’ property may be repossessed if they do not keep up repayments on a mortgage or any other debt secured on it. Loans are subject to status, terms and conditions.

    Daven Trust means Daven Trust Capital plc, a company incorporated in England and Wales with company number 07852281 and registered office at 32 Suderlane Street, London, EC9B 9HG. Daven Trust Capital plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under reference number 678976. Buy to Let is not regulated by the Financial Conduct Authority or the Prudential Regulation Authority.

    © 2021 Daven Trust. All rights reserved.

    This website is for authorised intermediaries only. This information has not been approved for use with customers and is not intended for public or customer use. Please confirm that you are an intermediary before accessing information on this website.

    Go back
    Confirm