Why the Lower GBP Is Good News For International Investors

For investors outside of the UK, this unrest can at first seem alarming. However, the various factors affecting the economic climate are a perfect storm for the housing market, and one that international investors find themselves in the eye of. They are in the best possible position to make the most of the current climate of uncertainty.

With the pound falling, this means investing in foreign currencies will get you more for your money compared to in the past, as currencies such as the dollar or the euro will be worth more in comparison to the pound.

This means that you can invest for less money compared to before the pound began to fall, thanks to the falling value of the pound making UK investments comparatively cheaper.

This period will not last forever, as the UK’s political and economic instability will calm down over time and smooth over, returning the pound to values ​​similar to the beginning of the year. Therefore international investors need to make the most of this period of financial uncertainty whilst they can.

Unlike other sectors of the UK economy, the housing market is famously stable thanks to housing’s status as a physical asset, which sees value grow over time. The UK has seen house prices rise at some of the fastest levels ever seen in 2022, as supply issues have caused demand to reach the stratosphere.

This means property investment is a good way to invest your money during periods of financial uncertainty, such as during inflation or a recession.

Rental prices have also been rising at a fast rate, making buy-to-let properties a popular investment option. They offer a great mix of a monthly rental income to give investors passive income, as well as capital appreciation increasing the value of properties over time.

Off-plan properties have proven to be a great choice in the present climate, given their lower price point and great rental yields. These can take longer to earn returns on, due to the time it takes to be constructed, so investing now means international investors will save money compared to when the properties go on the market.

Although the cost of living crisis is likely to put a cap on the growth the property market has experienced so far, the housing market is still one of the fastest growing and most stable markets in the UK.

International investors are encouraged to make the most of the falling GBP by investing their money now, so they can maximize the returns they will make on their investment by the time the pound recovers from this unstable period.

If you would like to learn more about the current state of the housing market or begin your journey into investing in UK property, call our industry-best sales team today. With over 17 years of experience in buy-to-let properties, they are sure to find you the best investments possible.

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