Brits get taste for dollars as pounds stretch further
British holiday home buyers are taking advantage of the pound breaking the $2 barrier, and a weak domestic property market, to pile into the States in search of bargain holiday homes with the contents of their UK current accounts.
There has been a surge in the number of dollar enquiries, according to foreign exchange specialist Moneycorp, with investors buying up cheap dollars via complex ‘forwards contracts’ for later delivery up to two years ahead.
Nick Bull of Moneycorp said: “As we reach the landmark $2 pound level this week, we have already seen a significant increase in the number of people selling pounds sterling and buying US dollars.
“Clients are taking this opportunity to forward-plan their purchase to take advantage of the market movements.”
City analyst Colin Perry said: “I don’t see the need to get too technical on this issue as it is bog standard to anyone – dollars are cheap and your British pounds will buy a lot more of them now than they did, say, 18 months ago.
“Indeed, £150,000 could buy $300,000 today, whereas it would only have got $257,850 at the start of 2006. That’s life, I suppose, and of course you can pay for other things with those shed-loads of cheap dollars.”