On Friday 24th June, the pound dropped below 1.32 against the dollar, reaching a 7-year low.
The announcement of the UK leaving the EU saw the FTSE100 fall by 8.7% when the London market opened on Friday morning.
However, the decrease in the value of the pound could present potentially fruitful opportunities for those based overseas.
Is the property market more attractive to investors?
The property sector is one that normally stalls in times of uncertainty. Investors, unsure how different political outcomes might affect their returns moving forward, often adopt a wait and see attitude, as we saw last year in the general election. However, with the pound weakening this week, one group that might be poised to pounce is foreign investors.
Those from countries which have seen their currency strengthen against the pound this week, chiefly the US, eurozone countries and the Far East, may be tempted to make an investment in the UK in the next two weeks when they can command a little more for their money, taking advantage of a currency lull that they can be pretty sure will rectify in the weeks and months post referendum.
It means that those who invest their money in British property at a weaker moment making stronger returns when the market bounces back, with short-term capital gains likely to be boosted, and the yields against rental prices also likely to be helped by a lower conversion rate at the time of investment.
It could also come as a very welcome boost for a property market that has been starting to slow in recent months, following the double blow of Stamp Duty tax increases for investors and political uncertainty, and it would certainly give it a good base from which to grow in the period after the referendum has concluded.
Click here to find out what leaving the EU could mean for the UK’s property market.