Investors are becoming more confident in the prospects of the pound sterling, thanks to the likelihood of a conservative victory in the General Election and a corresponding delivery of Brexit. This comes somewhat in spite of a recent Labour surge in popularity, slightly closing the gap in the most recent polls.
What does this mean for the value of pound sterling? It means there is a likelihood of a pickup in 2020, as evidenced by a number of investment management firms endorsing the pound as a top trade for 2020, including Goldman Sachs and Blackrock – that is somewhat on the condition that the conservatives can get a Brexit deal delivered.
Uncertainty around Brexit caused the pound to fall to its lowest value this September since the referendum back in 2016. However, over the last three months the pound has gained 8%, one of the sharpest gains in a short time frame since before 2016. As for the future, several analysts are expecting the pound to reach $1.30 – $1.39 by the end of 2020, which would see a return to Q1/Q2 2018 levels.
The outcome of all this is that the UK represents a buying opportunity for overseas investors thanks to the end of the Brexit saga and political/fiscal stability. The long and short of it for property investors from outside the UK is that the immediate future presents itself as a good time to make use of the pound’s predicted gains in order to maximise the benefits of your investment.
We have already written about how Britain presents a real bargain for overseas property investment, especially for those nations whose currency is pegged to the dollar – you can read about that here. The mean takeaway is that there is still time to capitalise on the low pound, and make use of future gains. Of course, as we have discussed, there are certain qualifiers that mainly come in the form of political stability and a successful and quick exit from the European Union. Either way, the future of the pound seems bright, meaning that great savings on the current weakness of sterling will not be around for ever.
At Aspen Woolf, we have property investment opportunities in the best performing locations in the UK. We regularly deal with overseas investors and have served clients from over 60 nations. Why not take a look at our wide range of investments opportunities.