Falling pound brings a boost for buy to let
08-21-2016
By David Thame
With the plunge in the value of sterling in the wake of the Brexit vote, overseas buyers have been taking the opportunity to snap up UK property and make a saving of around 12 per cent.
The falling pound is also helping overseas buy-to-let investors grab a slice of Manchester real estate.
With the plunge in the value of sterling in the wake of the Brexit vote, overseas buyers have been taking the opportunity to snap up UK property and make a saving of around 12 per cent.
Manchester-based property agent Matthew Lavin of Benoit Properties International says there has been a surge in interest in buy-to-let property from investors in the Middle East, Hong Kong and other countries with currencies pegged to the dollar.
Over the past few weeks the value of the pound has fluctuated wildly, reaching at one point a 31-year low against the dollar.
“UK property is now more than 10 per cent cheaper in dollar terms than it was on Thursday night and for clients buying for the long term this presents huge opportunity,” said Lavin.
“Over the weekend we sold six apartments in The Exchange Building in Liverpool to a group of buyers from Saudi Arabia who had seen the news about the falling pound and seized the opportunity.
“They saved around $130,000 collectively compared to what they would have spent on Thursday night.
“While the market may not be as favorable for domestic buyers, and clearly there is a lot of uncertainty for business, the fundamentals of the property sector remain strong and demand will continue to outstrip supply.
“Our investors are typically looking five to ten years ahead. They see UK property market as a secure place to park capital for long-term income and growth.
“The added value presented by a weak GBP is an added bonus and presents an unmissable opportunity.”