On September 26th, the former Chancellor of the Exchequer, Kwasi Kwarteng, announced his mini-budget – offering major cuts in taxes to fund the economic regrowth of Britain. Following this announcement, financial markets began selling off UK assets and in doing so, caused the Great British Pound (GBP) to fall to its lowest level against the dollar since 1985.
For investors around the globe, this has opened up a new investment opportunity, that allows investors to be able to buy a property in the UK for a significantly lower price than before, while the GBP is slowly recovering from its plummet.
To better understand what this means to an overseas investor, we’ve put together a table that outlines what overseas investors would have paid for a property with a price of £199,950 in the UK in February 2022 when the pound was at its peak this year, what they would have paid for a property when the pound first dropped, and what they would be paying for a property now in some of the most popular overseas currencies.
Cost on 28th Feb
Cost on 26th Sep
Cost on 17th Oct
In the three weeks since Kwarteng’s mini-budget, the pound has managed to recover from 1.03 to 1.13 against the dollar following the appointing of a new Chancellor of the Exchequer, Jeremy Hunt, and revoking most of the tax cuts previously promised – proving just how resilient the GBP is, and indicating that it will not take long for the GBP to strengthen further and recover back to its former level as experts predict a steady increase in value over the next quarter.
As an overseas investor in this market, there is no better time to invest in the UK property market and save whilst the currency remains at the lowest level the country has seen in decades.
To learn more about how you can capitalise on the dip in the GBP, and the cuts in Stamp Duty Land Tax, get in touch with one of our expert consultants today.