Strong pound stokes demand for foreign holiday homes
The value of sterling is encouraging investors to look abroad for the best value holiday property
THE rising value of the pound is driving increased demand for overseas holiday homes as Britons look for bargains abroad.
“Interest in property overseas is on the up, with mortgage brokers reporting a surge in enquiries in the first three months of 2014,” reports TheMoveChannel.com. “Foreign mortgage specialist Conti has seen enquiries soar 90 per cent in the first quarter of 2014 year-on-year.”
The improving economic outlook is also a factor, but the strength of sterling, especially against the dollar, means investors looking for a foreign bolthole are getting more for their money.
“The pound is currently worth around $1.67, 1.81 Australian dollars (AUD) and 1.85 Canadian dollars (CAD),” ThisIsMoney.co.uk reports. “This compares favourably with that low point of March 2013 when that same £1 would buy you $1.49, AUD1.45 and CAD1.53.
“One other noteworthy region where the benefit of a strong pound is evident is Turkey, a popular spot for British holidaymakers.”
But the euro remains comparatively strong, meaning those willing to travel further are likely to pick up the best deals.
Some analysts suggest that the value of sterling may be approaching its peak.
The pound “has been climbing for more than a year as investors have started to bet that robust growth will force the Bank of England to lift rates sooner than it would like,” according to the Financial Times.
“Yet an increasing number of analysts now feel that the UK currency is poised for a reversal, as elevated sterling bets have reached a three-year high.”