The trend of the property market:

To describe the trend of the London property market, we take as a source “Rightmove” the leading property portal in the UK, which shows increases in several areas, from the point of view of prices, demand, and quantity of transactions carried out.

It also provides the exact segmentation of the ‘typical’ buyer. Let us look specifically at the quantification of the increases recorded in December 2019 compared to the same period last year:

(a) As far as property prices are concerned, they recorded an increase of 23% ;

1. b) The demand for real estate increased by 15 % ;
2. c) The number of closed transactions rose by 7.4 per cent.

As far as buyer segmentation is concerned, major increases were recorded in the following two segments:

1) purchase for investment or second property +1.9% ;

2) luxury real estate +3.9% .

Conclusions :

From this overview it can be deduced, that after the uncertainty linked to the catastrophic and speculative apocalyptic scenarios envisaged in the event of an unordered exit of the United Kingdom from the European Union, with the reappointment of the government led by Boris Johnson such a scenario is no longer plausible or feasible and has boosted investor confidence to buy into the London property market.

The Exchange Rate:

Such investments are also aided by a relatively low GBP price in the market, albeit one that has risen dramatically over the same period last year against all other major currencies.

Indeed, an investor in the decision making process considers all the risk factors associated with the investment itself; one of which is the exchange rate.

Applicability:

Let’s say, for example, that you want to buy a property that will need to be paid off in a few months’ time, the biggest risk could be that of an increase in the purchasing power of sterling against the currency you hold most in your financial portfolio.

To mitigate this risk, through a specialised company, we offer our clients the purchase of the entire sterling countervalue of the investment, fixing the exchange rate at only 10 % of the total countervalue that will be purchased.

The exchange rate is fixed for 12 months from the time of subscription.

On the trend of the exchange rate of sterling and more specifically GBP/EURO we will talk about it later, when the definitive trend data referring to 2019 will be provided with equalised values to 2020.

http://www.forexrate.co.uk/charts/gbpeur.php