Pound recovers however still uncertainty.

July 18, 2016

The pound sterling rate against the dollar had its best week since 2009, this came about after the appointment of Theresa May as Prime Minister, this helped settle everyones concerns at having no real leadership in the country, it returned a sense of political stability in the UK.

Another factor was that last Thursday the Bank of England unexpectedly kept the interest rates on hold, many were expecting a cut of at least 0.25%, the present rate of 0.5% has now been in place for 7 years. Sterling had fallen to its lowest since 1985 during the previous week, it remains about 10% lower since the Brexit decision.

According to a recent report banks and building societies are expected to curb buy-to-let lending following the vote for Brexit. Under new recommendations from the financial policy committee, prospective landlords will need to ensure their rental income offers greater cover on their borrowing.

Economists are warning that the housing market across the UK is at risk of a serious downturn following the EU referendum, time will tell on that one.

 

 

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

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