The sharp fall in sterling and the possibility of interest rates touching zero has started to lure overseas property investors back to the UK. The property market has declined by 15% to 20% from its highs of a year earlier, and this means that cash rich investors in particular are able to snap up properties at significant discounts.
The pound has almost become equal to the Euro and has suffered losses against the yen, dollar and Swiss franc. As the economic outlook gets gloomier many feel that sterling will continue to decline.
Apparently Americans and Europeans have started to show more interest in UK properties although they have not yet started to buy. Investors from Asia too are showing interest in luxury flats as well as houses in London.
The incentive is the large savings that can be made compared to the previous year.
In one month Hamptons International in Knightsbridge has doubled their contacts with prospective buyers in India, the Middle East and China. Douglas & Gordon has seen a rush of rich Italian house hunters while those from Hong Kong and Singapore are knocking on the doors of Winkworth.
The interest from overseas buyers is remarkable as they get ready to enter back into the UK property market.
