A weak pound coupled with dramatic UK house price falls is attracting the interest of foreign property investors. Buyer analysis for the UK housing market by Home.co.uk, the property search engine, showed a marked increase in buyers from the US, Holland, Switzerland, Singapore and Austria looking to buy UK property.
The number of US buyers using the Home.co.uk property search engine surged by 10% between October and November. The combination of falling house prices and a rising US dollar means that the average UK home is now around 30% cheaper in dollar terms than it was in July 08. In certain areas the dollar price for UK homes has fallen a massive 50% since house prices and sterling peaked in 2007.
"UK property is beginning to look very cheap in US dollars or Euros right now," commented Doug Shephard, Business Development Director at Home.co.uk. "Foreign buyer interest is clearly on the rise but many will be waiting to see when Sterling bottoms out."
The Euro has also risen strongly against the pound over the last twelve months, eliciting increased buyer interest from the Eurozone, in particular from Austria and Holland over the last month. In terms of the Euro, UK house prices have fallen over 30% since November 2007.
Over the same 12 month period, whilst the number of UK buyers has changed only +4%, interest from European buyers has soared: France +21%, Spain +29%, Ireland +30%, Holland +38%, Italy +39%, Switzerland +47%, Austria +188%.
With asking prices in Sterling already being slashed by up to 30% by desperate sellers, foreign cash buyers can't believe their luck.
Notes for EditorsOver the last 22 years, Home.co.uk has become established as a dynamic, innovative and ethical service. By providing the UK's most comprehensive Property Search and Estate Agents directory coupled with detailed House Price analysis, Home.co.uk delivers the real power of the Internet to inform and empower estate agents, homebuyers, renters, landlords and sellers in across the UK.
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