Figures from Nationwide have shown that UK house prices rose in February by 0.6% compared to January a good sign for the UK economy especially following on from some positive UK mortgage approval figures yesterday which showed the number of mortgages being granted rising. All eyes will be on the housing market this month as the 1% stamp duty is re-introduced for all property sales between £125k – £250k. It could be argued that the re-introduction of the stampt duty at the lower level of the housing market shows that the government is confident in the strength of house sales at present which is again a positive sign for the UK, however should this stamp duty damage the current levels of house sales it could weaken Sterling exchange rates. The UK housing market is so important for the economy as so many people have money tied up in bricks and mortar and a rise in house prices plus an increase in mortgage lending from the banks will help more money flow through the economy and therefore have a positive impact on the exchange rates.
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