The pound rose to a level tantalisingly close to its highest since the referendum last week. The main reason for that seems to be the arrival of a new Chancellor, Rishi Sunak, who is widely expected to act more in line with the Prime Minister’s (and his chief strategist’s) desire for higher spending to stimulate the economy. You can never entirely rely on chancellors to do what they’re told, however.
Positive news on the economy has already started this week with the Rightmove house price index showing a 0.8% increase in the past month. That takes average asking prices to just £40 off the highest level ever recorded by Rightmove.
We know that people being unable to sell their homes in the UK has been a drag on plans to buy or move abroad, so a strongly recovering UK property market has to be a good sign. With further clarity on Brexit and the strengthened pound, this spring looks set fair for a property purchase abroad.
Do come and join us at the first Your Overseas Home shows of the year, in London, Manchester or Cheltenham, if you’re in a position to buy abroad.
However, will the pound’s strength last? Today’s headlines don’t make for very comfortable reading, as negotiators talk tough ahead of the start of Brexit trade talks. You can see these and other red letter days in the 2020 calendar on our key dates infographic.
As floods continue to seriously affect the UK, this week could easily prove the high water mark for the pound too. It looks like a very good week to fix the rate with a forward contract.
Why not make a call to your trader today on 020 8108 5337 to discuss your options?
