UK Trade Deficit Worsens - Bad For Cons As Growth Slows

WhatRecovery

The so-called recovery (property bubble) is about to stall and go into reverse according to some economists who say that UK trade will act as a drag on growth in the coming months because the exchange rate is also making imports cheaper here- a fall in exports will probably mean rising imports, meaning trade could be a drag on the economy later on and causing economic 'growth' to slow.

WhatRecovery

... just remembered - we buy our oil for petrol diesel etc in dollars, the Gaza crisis will have a knock on effect too!

padington

WhatRecovery wrote: »

The so-called recovery (property bubble) is about to stall and go into reverse according to some economists who say that UK trade will act as a drag on growth in the coming months because the exchange rate is also making imports cheaper here- a fall in exports will probably mean rising imports, meaning trade could be a drag on the economy later on and causing economic 'growth' to slow.

The exchange rate is making UK property worth even more in relation to the rest of the world. It's possible house prices will rise even more in many areas in the south East because of supply and demand. That's a win win for my personal strategy.

thescouselander

padington wrote: »

The exchange rate is making UK property worth even more in relation to the rest of the world. It's possible house prices will rise even more in many areas in the south East because of supply and demand. That's a win win for my personal strategy.

Presumably as the pound gets stronger foreign investors will have less £££ to spend on property and that will dent their buying power reducing pressure on demand. I'd also have thought once the pound approaches peak strength and as other economies start to strengthen this could trigger foreign investors to sell their properties as they chase new opportunities elsewhere. If anything there should be downwards pressure on prices.

padington

thescouselander wrote: »

Presumably as the pound gets stronger foreign investors will have less £££ to spend on property and that will dent their buying power reducing pressure on demand. I'd also have thought once the pound approaches peak strength and as other economies start to strengthen this could trigger foreign investors to sell their properties as they chase new opportunities elsewhere. If anything there should be downwards pressure on prices.

Not at the moment because competition for a nice place to live In the UK is so high and only getting worse. Imagine how attractive an asset is which is ...

A) Priced in a currency that's getting stronger and ...
Rare and increasingly sought after.
C) Gives you an income.
D) Safe from theft.

SailorSam

Have you got any links to your story OP ?

Generali

thescouselander wrote: »

Presumably as the pound gets stronger foreign investors will have less £££ to spend on property and that will dent their buying power reducing pressure on demand. I'd also have thought once the pound approaches peak strength and as other economies start to strengthen this could trigger foreign investors to sell their properties as they chase new opportunities elsewhere. If anything there should be downwards pressure on prices.

A higher pound makes property more expensive for foreigners but also increases the rent they receive. It cuts both ways.

People are chasing yield right now.

Thrugelmir

Generali wrote: »

A higher pound makes property more expensive for foreigners but also increases the rent they receive. It cuts both ways.

People are chasing yield right now.

The market can only absorb so many higher priced properties before an over supply point will be reached. Then the overseas investors will depart as quickly as they came.

padington

Thrugelmir wrote: »

The market can only absorb so many higher priced properties before an over supply point will be reached. Then the overseas investors will depart as quickly as they came.

Equally the lovely period houses with nice gardens, only a cycle ride away from the centre of the capital will experience ever increasing demand with almost zero new supply ...

They're a currency you just can't print.

Ronaldo_Mconaldo

Helps if there are some quotes or even links to backup the claims made by the OP.

Thrugelmir

padington wrote: »

Equally the lovely period houses with nice gardens, only a cycle ride away from the centre of the capital will experience ever increasing demand with almost zero new supply ...

There only so many people with deep pockets.