With Boris Johnson’s resignation as Prime Minister, the UK economy could once again be in turmoil. But what does Boris Johnson’s resignation mean for Overseas investors including your existing and future investments?
Ongoing disruption, like the Pandemic, Brexit, and Ukrainian War, have caused the pound’s value to decline throughout the year.
Since the EU referendum in 2016, Brexit has had a large impact on property prices and yields in the UK. The UK property market persists as a top global investment sector, marked by rising house prices and rental demand.
Forbes Advisor reported a 13% price increase in the average UK property until June 2022. Russell Galley, Halifax MD, highlighted robust demand and limited property supply.
Amid rising housing demand and possible pound depreciation, the UK is increasingly attractive to foreign investors.
If the Pound Drops – What Could This Means For Overseas Investors
A potential Pound drop could boost your current investments. Property values in Manchester, London, Liverpool, or elsewhere in the UK would rise notably.
Overseas investors gain purchasing power, finding premium properties more appealing for investment due to enhanced affordability. There would be a large opportunity for foreign investors to secure bargain-priced properties- if the pound depreciates.
A weaker pound boosts returns due to larger revenue through currency exchange on your investment gains.
Have you recently Reserved?
if you have a property reserved and the pound drops, it would be the ideal time to exchange and secure the asset for a lower cost and a higher value.
Investing in property in the UK has been an attractive investment strategy for overseas investors for many years. From April 2021, overseas investors buying UK property faced a 2% stamp duty surcharge. This was in addition to the previous 3% that applied due to investors already owning property elsewhere.
Buying UK property remains lucrative despite the surcharge, and a weaker pound could offset the surcharge’s cost increase.
UK Investors – How Could This Impact You?
A weaker pound decreases property value, yet strategic planning minimizes adverse equity effects. Unpredictable currency shifts affect investments; factor this into your decision-making process for investments. You should make sure to set up long-term investments with long-term objectives that can withstand the test of currency fluctuations. Likewise, a diversified portfolio can also provide relief if the currency weakens. By Building a diverse portfolio with a consultant, you can spread your investments to safeguard them and enhance your returns across regions and types.
Overall, Boris Johnson’s resignation and a change in the economy should impact your investment strategy. If the pound weakens, overseas buyers can optimize returns by investing in UK property at an opportune moment.
Access our free guide for top UK locations favoured by foreign investors. click here to download
UK investors, now’s the time to review your strategy, build a resilient portfolio to weather economic shocks effectively. Investments with a guaranteed return or investments in various regions, like Dubai and Marbella- both available through Advantage Investment.
Seize UK’s lower-priced investments during economic shifts to enhance future returns effectively. Connect now with our expert consultants at 0151 433 9300 or contact@advantageinvestment.co.uk for discussions on your investments, past, present, or future. Make strategic investment decisions today that will safeguard your financial future tomorrow.
