Sterling soars on tory election win

Photo: Edvvc

The pound is soaring on the wings of the Conservative Party's election victory, boosting buying power for Brits overseas.

The news of David Cameron's majority caused Sterling to bounce back immediately against major currencies. The pound shot up 1.9 per cent against the euro and has continued its rise since, with a 1.3 per cent increase during Monday afternoon trading, the highest two-day gain against the single currency recorded since the beginning of 2009.

Today, sterling also rose versus the US dollar to $1.5665, up 0.3 per cent on yesterday and the highest figure recorded in 2015 so far.

"Homes in the Eurozone and USA got cheaper again for UK buyers during Friday, as the City realised the Tories would gain power with a majority and Sterling rebounded against the euro and dollar," confirms Elaine Ferguson, Head of the Resource Centre at OverseasGuidesCompany.com.

The confidence of better buying power was evident at the A Place in the Sun Live property show over the weekend, adds Ferguson.

"We received record levels of enquiries for buying property abroad... many people seemed reassured by the election result and were confident about proceeding with their property purchase knowing the UK economy is in a position to maintain growth. The state of the property market affects practically anyone moving abroad and selling their UK home, so the continuing stability and ongoing house price growth that the new government should bring will benefit these people."

Spain "appeared to be the most popular destination", she adds, with the country's low property prices and the weak euro already boosting the country's popularity in recent months. Indeed, Spanish property now makes up one in 10 of all enquiries on TheMoveChannel.com.