The pound has shot up to its highest level since May 2018 against a host of major currencies after the results of yesterday’s exit poll. With the results showing the Conservative party on course for a landslide victory, the pound surged through the 1.20 barrier against the Euro and 1.35 against the dollar. Sterling has jumped to a three-and-a-half-year high against the Euro.
Boris Johnson had called for the UK’s third General Election since 2015, and the first to be held in December for nearly 100 years. The election was called to increase his majority in Parliament and end months of delays surrounding Brexit.
The Conservative party won a landslide victory, handing Boris the clear mandate to get Brexit resolved. Mr Johnson has vowed to take the UK out of the European Union by 31 January.
In addition to Sterling’s gains, businesses listed on the London Stock Exchange with a UK focus have also reaped the benefits of the Conservative election victory, as global share prices have gone up following the result.
Another market set to benefit from yesterday’s result is the Manchester property market. Whilst other investment sectors have suffered during this political volatility, the property market has blossomed, and it will only get stronger after yesterday’s result.
In a blog we published yesterday on how the General Election would affect the UK property market – we showed the pounds serge from August 2019, this is how the pound currently sits in the market today:
|Currency||Apr-18||Aug-19||Dec-19 (pre-election)||Dec-19 (post-election)|
Applying the above table to a property valued at £300,000, here is what you would get for your money at the current value of the pound:
|Currency||Apr-18||Aug-19||Dec-19 (pre election)||Dec-19 (post election)||Price growth (Aug 19- Dec 19)|
Whilst the pound has risen due to the Conservative victory, it still hasn’t got to where it was in April 2018. With Brexit set to take place January 31st and the UK’s confidence in a Conservative-led government, now may be the time to invest in a UK property before the pound surges again. This currency window of opportunity won’t last forever. If you are looking to invest in a property in Manchester, the UK’s buy-to-let hotspot, get in touch today and we will introduce you to our latest developments.