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The sterling takes a pounding from the euro

Jude Buttle

Overseas homeowners and British holidaymakers were hit hard once again yesterday, by the news that the sterling slumped to a record low against the euro currency.

The UK pound dropped to 1.23 euros, which is its worst showing since the launch of the euro in 1999. The pound also fell against the US dollar, down to $1.80, its lowest level in two years.

Gloomy predictions by the UK Chancellor Alistair Darling - who said that the British economy was facing its toughest challenges in 60 years - are being blamed for the pounds current predicament.

The sterling's decline will have a negative impact on anyone currently interested in buying property abroad, as a weakened pound consequently means higher purchasing costs.