By +Eric Jafari
As the UK braces itself for further
austerity measures in today's (March 20th) Budget, the
Centre for Economics and Business Research (CEBR) has claimed that
any further drop in the value of the pound will not be entirely bad
news. In fact, London's property market could benefit from a
devalued currency, as the city becomes more affordable for foreign
"The pound has weakened markedly since early January as the UK
failed to achieve economic growth and a further tranche of
quantitative easing became ever more likely," the CEBR explained in
a statement. "The weak pound probably pushed up house prices
modestly in January. If the pound
fails to recover lost ground, the weak currency has the potential
to increase London prices throughout 2013."
For those considering selling their property, this is good news.
With desire for real estate continuing to be high in the capital,
property owners will be able to demand high prices, especially in
However, the outlook isn't so bright in the rest of the UK and
figures from the Office for National Statistics, released this
morning, have shown that growth in house prices has begun to slow.
Over the year to January 2013, the typical British home increased
in value by 2.2 per cent. This is below the predicted rate of 2.4
per cent and represents an easing of the 3.3 per cent growth seen
over the year to December 2012.
While London house prices now stand 8.5 per cent above their
pre-crisis peak, rising 5.5 per cent over the year, Northern
Ireland experienced a dramatic fall of 5.8 per cent. The south-east
and north-west of England witnessed modest price gains of 1.2 per
cent and 1.1 per cent respectively, while throughout the country
the average rate of growth stood at 1.2 per cent. This is likely to
change significantly after today's Budget, but it seems that
London's property market will emerge victorious.
20 March 2013
Sterling,Budget 2013,London House Prices