Starting from June, the exchange rate of the British pound against the Chinese yuan has been favorable, with a trend even breaking through 9.
At the same time, the largest mortgage lender in the UK has reported a 12% year-on-year decline in house prices, marking the first drop since 2012.
However, there are reports suggesting that some banks are planning to further increase mortgage interest rates.
British Pound Exchange Rate Increases
As of mid-June, there has been a significant rise in the exchange rate of the British pound against the Chinese yuan.
Over the past week (data collected until June 12th), the exchange rate has remained above 8.8.
This is undoubtedly good news for friends who have businesses or work in the UK.
Moreover, the performance of the pound against the euro and the US dollar during the same period has also been favorable, particularly benefiting enterprises involved in international trade.
These series of data demonstrate a strong economic recovery momentum in the UK, attracting more businesses to invest in the country.
UK House Prices Decline by 1%
According to the latest data from Halifax Bank, the average house prices in May have decreased by £3,000 compared to a year ago, with a drop of £7,500 from the peak in August.
The bank also states that the current average house price in the UK is £286,532, showing a slight decrease compared to the previous month.
Southern England has witnessed a downward trend in house prices, and the decline is particularly noticeable nationwide (excluding Wales).
Although the decrease in house prices may bring joy to first-time buyers, the continuously rising mortgage interest rates could dampen the enthusiasm for purchasing properties.
Mortgage Interest Rates May Increase
The latest report from the BBC indicates that the UK inflation has not dropped to the expected level and the interest rates continue to rise.
Relevant institutions also predict that the Bank of England will continue to raise interest rates in the near future, potentially reaching 5.5%.
The increase in mortgage interest rates will directly impact borrowers.
Last Thursday, HSBC temporarily suspended “new business” and reopened its service channel following criticism.
The continuous rise in mortgage interest rates is a confusing time for many customers.
Some landlords who purchased properties through mortgages may feel economic pressure and decide to sell their houses.
If you encounter financial pressures while running a company, you can also consult our accounting team for adjusting operational strategies.
