Private wealth investment may await sterling peak

Foreign private wealth investors considering buying UK assets could decide to hold off major decisions as the pound rallies against the euro.

Robin Wilson, head of overseas at property investment specialists Rightmove.co.uk, argued: ’Rising sterling rates may [make] people sit on their hands and try to call the top of the market before splashing out.’

Private wealth investors might be following Forex fluctuations carefully, as currency values can have a significant impact on the cost of major asset acquisition.

The property investment expert pointed out £175,000 converted to euros eight months ago would have worked out around €187,000, but the same sum changed today would buy almost €30,000 more.

Bank of England statistics show an overall trend of sterling improving against the single European currency, as the pound reached 1.1956 against the euro yesterday (July 8th).

Reuters reported Forex buying and selling was little affected by the Bank of England’s decision to leave the base rate at 0.5 per cent, where it has been since March 2009.ADNFCR-2318-ID-19882389-ADNFCR