![]() ![]() The same is true of the residential property market in London’s prime postcodes. In addition to the US economy proving resilient and paving the way for more aggressive rate hikes, safe-haven investors have also been busy buying the greenback.Īs financial markets decide what Liz Truss ultimately means for the UK, a weak pound will act as a shock absorber for some parts of the economy, supporting the share price of London-based companies who are paid in dollars for example. While the pound has been one of the worse-performing major currencies this year, the dollar has grown in strength versus a series of other currencies, hitting parity with the euro in recent weeks. The sharp decline in sales came after an upwardly revised 0.4% increase in July that appears to be a temporary bounceback after the Queen’s platinum jubilee celebrations in June.ĭollar buyers of London property pay a lot less than a few years ago because of sterling’s weakness, according to the property firm Knight Frank. Economists had predicted a more modest fall of 0.5%. It came as the latest official data showed cash-strapped consumers cut back on spending by more than expected in August, when retail sales volumes in Great Britain fell by 1.6%. On Black Wednesday, sterling slumped 4.3% to finish the day at $1.778. On the 30th anniversary of Black Wednesday when the UK crashed out of the European exchange rate mechanism, the pound also hit a 17-month low against the euro, with €1 worth 87.66p. Sterling fell by more than 1% against the currency to $1.1351, its lowest since 1985, partly reflecting broader dollar strength as well as specific concerns about the outlook for Britain. The pound sank to a fresh 37-year low against the dollar on Friday after weaker than expected retail sales raised fears that the British economy is already in recession, writes the Observer’s economics editor Phillip Inman. Here’s our full story on the pound, which is tanking on the 30th anniversary of Black Wednesday, when the UK crashed out of the European exchange rate mechanism. The London Pound article has been lifted from Strutt & Parker’s in house publication the ‘ Country House Handbook’, a thought leadership piece offering valuable insights into making the most of a rural property and expert advice to buyers and sellers.14.42 CEST Pound tanks on 30th anniversary of Black Wednesday It is worth £8 in Greater London, £17 in the south west, £24 in Yorkshire and an astonishing £27 in Wales. ![]() The ‘prime London pound’ – the currency for those that own a property in the boroughs of Westminster and Kensington & Chelsea - is the most valuable property currency of all. The exception is north east Scotland, where it’s worth just £5, buoyed by oil-rich Aberdeen. The London pound is worth £6-£7, on average, in most regions of the UK from the Midlands northwards. Less surprising is evidence of a marked north-south divide. What makes Canterbury doubly notable is that similar historic cities, such as Oxford and Cambridge, the London pound is worth just £2. “It’s the same price level as the West Country, but much closer to London.” “I was very surprised to see Canterbury looking such good value,” says McMahon. One oddity in the £5 bracket is Canterbury, which is less than an hour from St Pancras on the High Speed 1 line. James Mackenzie, Head of the Country House Department at Strutt & Parker, said: “We sold more properties over £2 million in the Cotswolds than anywhere else in the country last year – and those were mostly to Londoners moving out.” Sell a £2 million four bedroom terrace in Battersea with a patio garden, for example, and you can buy an historic home in the Cotswolds with several acres. It’s a longer commute, but the trade-off is a very attractive one. “To reach the £3 mark – tripling your purchasing power – you have to head further out to the classic spots such as Hampshire, South Oxfordshire and the Cotswolds.” “In the commuter-belt locations, such as St Albans or Guildford, the London pound is worth £2,” explains Stephanie McMahon, Head of Research at Strutt & Parker. When it comes to maximising the value of London property, the exchange rate grows in concentric rings around the capital. Now, by comparing the price of the average detached home in inner London – currently worth £1,537,232 - leading national estate agent Strutt & Parker has come up with a currency exchange rate showing the true value of the ‘London pound’ across the country.īy this measure, the London pound is worth anything from £3 in the Cotswolds to £5 in the West Country, to a staggering £9 in the Highlands and Islands – making it a very hard currency indeed. House prices in London are now higher, relative to the rest of the country, than they have ever been, reports Nationwide. ![]()
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