House Prices and GBP Exchange Rates
This morning the latest mortgage approval figures are due to be released for the UK and these could go to heighten the focus on the housing market which has been a big talking point of late. With so many people having a lot of their money tied up in bricks and mortar the housing market an have a big impact on the economy, when house prices are rising it encourages more people to sell resulting in more funds moving through the economy while low house prices usually means people do not want to sell as in some cases it could leave people in negative equity, an issue we saw a few years ago when the housing market collapsed. At present the headling figure is that house prices are rising, in fact a figure this morning shows that the average property has risen to £172,011 a 6.4% increase however, when this figure is coupled with the fact that 7 out of 10 regions of the country saw property prices fall it really highlights the disparity between London and the South East compared to the rest of the country. Many people are commenting that the housing market is now back to pre-recession levels yet I think there will be many people in different parts of the country struggling to sell their house that would disagree with that statement.
As a result of this the headline figures are helping to support Sterling but there is an underlying concern that this growing disparity could lead to major issues similar to those witnessed during the last housing market crash. Should these fears be realised then we could well see Sterling exchange rates fall dramatically and this goes to show that despite all the positivity we are still in a precarious position and that should just one section of the UK economy start to decline it could bring the rest of the country down with it. So, this mornings mortgage approval figures will be important and therefore if you would like to discuss this in more detail and how it could impact your currency transfer please call us today on 0800 328 5884 or if calling from abroad on 0044 1494 725353 alternatively you can email me directly on email@example.com.