Weak Pound Cancels Out Increased Costs

In recent months the pound has continued to weaken against the dollar and the euro giving some investors the opportunity of cancelling out the three percent increase in stamp duty on some property purchases. As a result of these currency movements such acquisitions are around seven percent cheaper when compared to a few months ago.
The question though is whether these movements have been enough to encourage investors to set aside Brexit related uncertainty. Market data indicates that there are some investors that remain cautious as they may not want to hold sterling assets in the event of a Brexit fearing further falls in the pound. At the same time London’s recent and historic performance supports our bullish long term outlook particularly for traditional stock in prime central London irrespective of the referendum result.