Sterling has welcomed each new week since the vaccine programme started in mid-December with a surge in optimism, and apart from the occasional midweek wobble and a worrying lurch lower in early April has held onto those gains surprisingly well.
That has continued this week, and you’re now getting nearly €7,000 more for each £100,000 you change than at Christmas. In dollar terms, the gain has been similar ($6,400) but even better across the year, as you’re getting $18,000 more for your £100,000 than a year ago.
It could hardly come at a better time as we look forward to the end of the lockdown and travel starting to many countries in the summer.
But will those gains stick around until the summer?
The jury is most definitely still out on that one. Read our latest Quarterly Forecast for the “expert” view; an amalgamation of the forecasts of leading banks.
If you look at recent history – perhaps as good a guide as any – the answer is probably not, and there is nothing more depressing than seeing your advantage (and cash) slipping away as your property purchase approaches, even if you can afford to find the extra money.
That’s why we always suggest a forward contract, which locks in today’s rate for the year ahead, allowing you to budget more effectively. Overseas estate agents tell me that it strengthens your hand in negotiations too, which is useful in what will be a very interesting time in the international property markets. Do call your trader on 020 8003 4915 about that.
If you are buying abroad, do keep up to date with the news as countries move out of lockdown and property markets get into gear, with the Your Overseas Home webinars. They’re all free and an entertaining summary of what’s what in our favourite overseas buying countries. You can register for a pass here.
