blog-jan-10

A further drop in the value of Sterling at the dawn of 2017 reinforced the growing attraction of UK real estate for international investors, with industry experts noting how the sector stands to benefit from global economic currents.

“The UK remains one of the most transparent and active places to do business, and currency arbitrage by international investors is opening up opportunities for new and greater investment which will no doubt help to drive the UK real estate market in 2017,” said one senior figure.

The pound fell by more than 1 per cent against the euro and the dollar on Monday 9 January following remarks from British Prime Minister Theresa May about future relations with the European Union, with the additional consequence that the FTSE 100 index rose to another historic high, thanks to brighter export prospects for UK firms.

The well-respected Royal Institution of Chartered Surveyors (RICS) backed up these positive sentiments for the sector in its outlook for the year. “Demand for UK property will continue to outstrip supply in 2017,” it argued. “The ongoing shortfall of stock across much of the sales and lettings markets is set to continue to underpin prices and rents.”

RICS believes that average UK property values and monthly rents will increase by around 3 per cent during the coming 12 months.