Sterling reaches midweek 1% above this time last week against the euro and slightly ahead against the US dollar too, strengthening fractionally this morning as better than expected GDP data came through for the second half of 2020.
The economy grew by 1.3% in the last quarter of 2020, although it remains 7.3% down on the previous year. House prices fell in March too, according to Nationwide, possibly presaging the end of the stamp duty holiday boost
Overall, however, sterling ends the first quarter of 2021 on a high that no-one predicted. The pound does tend to do well in the spring, which you might put down to the joys of the season except that they also have spring in Europe and the USA too.
Either way, in a normal year when British people are rushing off to buy property abroad it’s a period when good sense can go out of the window. It’s all too tempting to make an offer on a property at €1.17 and then have to complete in the summer when the pound has, for the past few years anyway, been back below €1.10.
That’s why we urge clients who are serious about property to lock in the rate with a forward contract, and today’s it’s back at its highest for a year. You can do that by calling your trader on 020 8003 4915.
On property buying, incidentally, confusion reigns about how able we are to travel abroad to buy property.
The UK government rules are clear that as of last Monday you CAN travel abroad without risking the £5,000 fine: “Where it is reasonably necessary… to undertake any of the following activities in connection with the purchase, sale, letting or rental of a residential property —
(a) visiting estate or letting agents, developer sales offices or show homes;
(b) viewing residential properties to look for a property to buy or to rent;
(c) preparing a residential property to move in;
(d) moving house;
(e) to visit a residential property to undertake any activities required for the rental or sale of that property.”
However, most EU nations are taking a different approach, for now, and not allowing non-resident third-country nationals to enter.
That may well change at short notice for those who have a clear test, so do keep checking in on your country of interest at propertyguides.com for the latest news.
