Foreign homebuyers from the United States have benefited the most from a weakening pound, research by Alliance Fund has revealed.
Alliance analysed the average cost of a property across both the UK and London as well as the changes in this cost since the start of the year.
They then observed what this cost translated to in the currency of 10 of the most prominent foreign home buying nations and how they benefited from a weakening pound when it comes to property affordability within the UK market.
Iain Crawford, CEO of Alliance Fund, said: “The current forecast for the UK property market may be starting to worry the nation’s homeowners, but one person’s loss is another person’s gain, particularly when it comes to the fluctuating value of bricks and mortar.
“However, while opportunistic domestic investors are still waiting in the wings as house prices climb ever higher, a weakening pound has presented a great opportunity for many foreign buyers, who are now considerably better off when buying compared to the start of the year.”
The research shows that it’s buyers from the United States who have seen the biggest boost to their property purchasing potential within the UK market, with the average home across the UK now costing them -14.8% less and a staggering -16.5% in London.
Back in January, the average house price of £272,833 equated to $369,825 US dollars at a rate of 1.36 USD to the pound.
Fast forward to today and the average UK house price has climbed by 7.1% to £292,118.
However, with a weak pound now commanding just 1.08 dollars, the average UK home is now worth $314,932.
Homebuyers from the UAE are also considerably better off when purchasing a UK property, with the average UK home now -14.5% more affordable, while in London this discount sits at -16.2%.
Additionally, Hong Kong homebuyers are now paying -13.9% less for the average UK home and -15.6% less in London, with buyers from Singapore at -9.5% and -11.3% respectively.
Furthermore, buyers from across the world in Canada, India, Australia and China are also benefiting from a boost to property affordability in the UK market.
Crawford added: “With the government’s latest economic interventions doing little to reverse the declining strength of sterling, buyers from the US, UAE and Hong Kong, in particular, are set to keep on saving when it comes to a UK property purchase.
“This should help further bolster a rejuvenated level of foreign demand following pandemic restrictions.
“However, this activity is likely to be concentrated within specific areas, such as prime central London, and so it will do little to help negate the uncertainty that is currently hanging over the wider UK market.”
