As the fluctuations of the pound affect the markets of England

Fluctuations in the pound sterling have a dual effect on the market of real estate of great Britain. On the one hand, the weakening of the British currency relative to other world currencies makes it more attractive real estate in London to foreign investors, on the other hand, the weak pound made more expensive the import of construction materials, which affects the construction business. Particularly affected are the small construction company.

About a third of small construction companies in the UK said that the rising price of building materials eats up their profit, almost a quarter of companies admit that they are forced to shift the increase in prices to the end consumer.

All of these companies are accusing a Brexit. Weakened in connection with the withdrawal from the European Union, the pound made more expensive purchases of materials produced outside the United Kingdom.

Increased timber prices. Followed by bricks, blocks, Windows, drywall, boilers and radiators, ceramic. Approximately 85% of builders say that such a situation could lead to collaboration with fraudulent companies in the procurement process, to save, 32% are forced to reduce their profits, 22% report that they shift the rise in prices for customers, and every tenth small company informs about the rejection of the project due to rising costs of materials.

Construction projects are now much higher than, for example, a year ago. This means, moreover, that the small companies is becoming harder to do business in the market of real estate in the UK, large companies for which this price increase is not so noticeable, can take their place in the market, that is risky monopolization of the market, and consequently, the uncontrolled growth of prices.

Meanwhile, last month the pound sterling has tended to strengthen and possibly import the content will no longer go up.

® Helen Entree. 04.08.2017 G.

Apartment in the heart of London – Westminster

Taxation legal. individuals in the UK

Tax on capital gains in the UK

What “Stamp duty”

Best offer

Land and types of ownership of property UK

The process of buying real estate

Why we recommend to buy new apartments and houses

Why Brits want to leave EU?

In the UK, reduced Stamp duty

Why buyers from Russia should not fear sanctions

More than 325 % over two years has earned our clients

St Paul’s Way

Wembley Park Gate

Enderby Wharf

Hale Village

Marine Wharf (pier)

         Tower Harbor in Canary Wharf