As the UK teeters on the brink of recession, the sales of multi-million-pound houses are soaring across the region.
Based on figures from 2018-2019, the counties that have experienced the highest growth are Norfolk (224%), Wiltshire (174%) and Cornwall (165%). Each of these are relatively rural areas comprising of sprawling countryside and smaller villages and towns. This could signify an exodus from urban areas as homeowners want increased distance between themselves and others.
Other parts of the country that have seen over 100% increase in the sale of seven-figure properties include Gloucestershire, Berkshire, Dorset, West Sussex, Somerset, and Suffolk.
In August, the sale of 1 million pound-plus homes doubled, far outperforming the rest of the housing market. Lower priced properties did experience growth compared to the previous year, but only at a rate of 61%. It was also found that those buying properties were demanding quicker closing times and that buyers were found on average 18 days quicker than last year.
A period of growth
The property market in the UK is going through a period of growth after the COVID-19 lockdown put a halt on in-progress transactions. With measures lifted, at least for now, a flurry of sales has been completed. In addition to this, a stamp duty holiday announced by the government has further driven demand as buyers race to save thousands on taxes.
The current liquidity and pace of the industry is also a bonus for foreign investors. Wealthy internationals are looking to take advantage of the situation to purchase fine homes in popular areas of the country.
Fluctuations in currency values
Another impact of lockdown was the drop in the value of the GBP. While this has had significant implications for businesses and citizens in the UK, it has been great for those looking to exchange their dollars, euros, or other, into pounds. Investors have swarmed to the UK, taking advantage of the weak pound, and have saved significant sums on their purchases.
The volatile fluctuations have also been great for forex traders. During the lockdown, forex trading activity increased some 300%. Not only that but as mentioned before, swinging values against the dollar and euro meant there was money to be made exchanging them for pounds and vice versa.
Thousands, if not more, amateur traders flocked to comparison sites to see which was the best forex trading platform for them. For example, the direct comparison of two brokers provides a side-by-side evaluation of both platforms. This allows first-time or beginner users to choose the one that best suits their needs.
Through these sites, investors have traded on the performance of various world currencies as we pass through the pandemic and beyond.
The key to bouncing back
In terms of the UK property market, its current growth and positive long-term forecasts mean it could directly contribute to the rebounding of the GBP. As the markets see investor confidence in British properties soar, and more millions are pumped into the national economy, the pound is likely to rally and regain some of its previous strength.
No one knows what the future holds but this level of uncertainty is not necessarily bad news. For the UK property market, foreign investors, and forex traders at least, volatility and price fluctuations can be positives, especially in terms of their investments.
