Dollar earners could be the saviours of UK property market

With sterling falling by 28% against the dollar since its height in November 2007 and UK house prices having diminished by around 20%, dollar earning ex-pats could now benefit from a discount of over 40% on the price of a home in Britain, according to The County Homesearch Company, the UK’s largest network of home-finding agents.

The company, which has 20 offices nationwide, has reported a significant upsurge in potential new business in the last two weeks from dollar earners looking to cash in on the significant savings on offer.

Jonathan Haward, Managing Director of The County Homesearch Company, comments: “We have had more inquiries in the last two weeks than in the last two months combined and the vast majority have been dollar buyers, including those based in America, the British Virgin Islands and even Botswana.

“The reason for this sudden burst of interest is simple. With house prices in the UK having fallen significantly, particularly in London where property has dropped by 25% in some areas, and the dollar having risen by over 25% against the pound, dollar buyers are now able to buy a home with the equivalent of a 40% - 50% discount on this time last year.

At its height in November 2007 the dollar stood at $2.10 to the pound, compared to around $1.50 today. The pound has also fallen strongly against the Euro, with the pound now standing at €1.11 the lowest level since the currency was launched in 1999 and 17% down on the beginning of the year when it was at €1.34. Some bankers are now predicting that the pound could fall to parity against the Euro in 2009.

“The pound has been falling steadily since August and with no end insight, this is a perfect opportunity for cash rich buyer from both the dollar and the Euro zones to take advantage of Britain’s weak property prices. I think the new year may well bring an influx of dollar earning ex-pats looking to buy property and capitalise on the great deals available, when perhaps previously they wouldn’t have been tempted. For those in the property industry this could be a golden opportunity, which should not be missed.”