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In recent months, currency movements have had a notable impact on the UK property market, particularly for international buyers. Shifts in the strength of the U.S. dollar and other major currencies have influenced both the cost and timing of transactions, making currency strategy an increasingly important consideration for buyers, sellers, and their advisors.

Specialists in international payments and currency exchange, Fiberpay have a focus on clients buying or selling property in the UK. Over the past year, they have handled almost 1,400 referrals for overseas buyers purchasing property in London. In the first half of this year, U.S. buyers represented the largest share—52%—followed by clients from Hong Kong and various European countries.

One factor behind this trend was the strong U.S. dollar, supported by higher interest rates and global uncertainty. For many American buyers, this made the pound look comparatively affordable, and UK property more attainable. More recently, however, the exchange rate picture has changed.

Since the start of the year, the dollar has weakened by about 12%. For a £1 million property, that shift means an additional cost of roughly $120,000 for a U.S. buyer. In larger transactions, currency movements of this scale can have a significant impact on affordability and timing.

Case study from Fiberpay: Managing currency risk in a London property purchase (saving a U.S. buyer over £100,000)

A recent example involved a U.S.-based actor buying a £1.1 million home in North London. They were concerned about possible dollar weakness linked to proposed trade tariffs, and their funds were tied up in a fixed-term investment. The delay increased their exposure to exchange rate movements.

Working with their estate agent, Fiberpay arranged a forward contract so they could lock in an exchange rate with a 5% deposit. When the purchase completed, the rate had moved sharply against them—but their cost was fixed. The forward contract avoided around £80,000 in additional cost, and by using our service instead of a traditional U.S. bank, they also reduced FX margins and fees by about £20,000.

In total, the approach saved over £100,000, demonstrating the value of early currency planning in international property deals.

Takeaway

For anyone involved in cross-border property transactions—whether buyers, sellers, or advisors—currency planning can be just as important as securing the right property or mortgage terms. Exchange rate shifts can happen quickly, and forward planning can help protect budgets and timelines.