The combination of falling house prices and a rising US dollar means that the average UK home is now around 30% cheaper in dollar terms than it was in July 08. In certain areas the dollar price for UK homes has fallen a massive 50% since house prices and sterling peaked in 2007.
“UK property is beginning to look very cheap in US dollars or Euros right now,” said Doug Shephard, Business Development Director at Home.co.uk.
“Foreign buyer interest is clearly on the rise but many will be waiting to see when Sterling bottoms out.”
The Euro has also risen strongly against the pound over the last 12 months, eliciting increased buyer interest from the Eurozone, in particular from Austria and Holland over the last month. In terms of the Euro, UK house prices have fallen more than 30% since November 2007.
Over the same 12-month period, while the number of UK buyers has changed only +4%, interest from European buyers has soared: France +21%, Spain +29%, Ireland +30%, Holland +38%, Italy +39%, Switzerland +47%, Austria +188%.
With asking prices in Sterling already being slashed by up to 30% by desperate sellers, foreign cash buyers reportedly cannot believe their luck.
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