Today’s Exchange Rate Report:
As of 11:00 on November 24, 2025, the real-time market exchange rate of the British pound against the Chinese yuan stood at 1:9.3101, up 0.0279% from the previous closing level. The main factors influencing the movement were the rise in the unemployment rate and the easing of inflation, which pushed market expectations for a Bank of England rate cut in December up to 75%–80%, placing downward pressure on the pound.
Major Events of the Week:
The UK announces sweeping reforms to the permanent residency system
October inflation falls, with economic improvement still facing underlying risks
Authorities introduce measures to tackle the youth employment crisis
Multiple regions in the UK issue ice and freezing warnings
Cloudflare outage triggers widespread internet disruptions
01 The UK Announces Sweeping Reforms to the Permanent Residency System
On November 20, UK Home Secretary Shabana Mahmood announced a new immigration policy proposal under which the waiting period for lawful migrants to obtain permanent residency will be significantly extended, with some groups required to wait as long as 20 years. The policy is scheduled for formal implementation in the spring of 2026.
The core adjustment under the proposal is that the qualifying period for permanent residency will be extended from five years to ten years, affecting approximately 2.6 million migrants who have arrived in the UK since 2021. However, the new policy will follow the principle of “the greater the contribution, the shorter the waiting time.” Applicants with an annual income exceeding £150,000 for three consecutive years, or those classified as exceptional talents or entrepreneurial founders, may apply for permanent residency after just three years. NHS doctors and nurses, or applicants with an annual income exceeding £50,000 for three consecutive years, may still apply after five years.
At the same time, a points-based settlement system will be introduced, requiring migrants to demonstrate their level of social integration, economic contribution, and good character before being granted settlement. Applicants will need to meet stricter baseline requirements, including English proficiency at A-level standard, a clean criminal record, and an annual income of at least £12,570 for no fewer than three consecutive years. Mahmood stated that becoming a British citizen “is not a right, but a privilege — and one that must be earned.”
In addition, future rules may require migrants to obtain British citizenship before becoming eligible for welfare benefits and social housing, rather than being eligible upon receiving permanent residency as is currently the case. It is worth noting that all measures announced so far remain at the proposal stage. The government has already launched a public consultation, and the specific policies are expected to be rolled out in phases in April and October next year.
02 October Inflation Falls, with Economic Improvement Still Facing Underlying Risks
On November 19, the UK Office for National Statistics reported that the country’s inflation rate fell to 3.6% in October, marking the first decline in four months and providing positive economic support ahead of Chancellor of the Exchequer Rachel Reeves’ upcoming budget announcement. After holding steady at 3.8% for three consecutive months, the Consumer Price Index (CPI) declined to its lowest level since June.
The narrowing rise in energy prices was the primary driver of the easing inflation, while food inflation moved in the opposite direction, climbing to 4.9%. Prices of staple foods such as beef and whole milk rose sharply, with increases as high as 27%. Core inflation excluding food and energy edged down simultaneously, and service-sector inflation also showed signs of moderation.
With the budget due to be announced the following week, markets expect Reeves to introduce tax increases totaling £30 billion annually. She stated that “fair measures” would be used to stabilize prices and reduce NHS waiting lists. However, Lindsay James, an investment strategist at Quilter, warned that the economic outlook remains fragile and that tax hikes could weaken market confidence.
The UK economy is currently showing signs of divergence: while the overall cooling of inflation sends positive signals, the combined pressures of higher food costs and pending tax increases continue to weigh heavily on household finances. As a result, the apparent “economic improvement” still warrants cautious assessment.
03 Authorities Introduce Measures to Tackle the Youth Employment Crisis
On November 20, British media reported that between July and September this year, the number of “NEET” young people aged 16 to 24 — those not in education, employment, or training — fell to 946,000, down by 2,000 from the previous quarter. However, this group still accounts for approximately one-eighth of the population in that age bracket. Since early 2024, the number has consistently remained above 900,000, and earlier this year reached an 11-year high of 987,000.
Data show that 580,000 NEETs are classified as economically inactive, while 366,000 are unemployed. Research by the Youth Futures Foundation indicates that the rising prevalence of long-term illness among young people over the past three years has been a key factor behind economic inactivity. UK Department for Education data from 2023 also show that 19.5% of affected young people face mental health issues, with the number of males and females standing at 512,000 and 434,000 respectively.
In response, Work and Pensions Secretary McFadden referred to a “Youth Guarantee” scheme under which young people would be offered access to education, training, apprenticeships, and paid employment opportunities. Chancellor Reeves is also planning to introduce measures in the upcoming budget to provide guaranteed jobs for young people who have been receiving Universal Credit for 18 consecutive months without employment or study opportunities. Those who refuse to participate may lose their welfare eligibility.
In addition, other government departments have announced that a former Health Secretary will lead an investigation into youth employment, with greater emphasis placed on the impact of mental health and disability.
04 Multiple Regions Across the UK Issue Ice and Freezing Warnings
On November 21, British media reported that the UK has experienced its strongest cold snap since the start of autumn, with nighttime temperatures in some regions dropping to multi-month lows. Monitoring data show that temperatures in Loch Glascarnoch, Scotland, fell to as low as -11.7°C. Temperatures in Swyddffynnon in Wales, Katesbridge in Northern Ireland, and Shap in England reached -7.2°C, -6°C, and -6.7°C respectively — marking the largest day-to-night temperature differences since January 11.
This cold spell coincides with the tail end of a larger cold wave, with snowfall and transport disruptions reported across multiple parts of the country this week. The UK Met Office has issued yellow ice warnings for several regions, with warnings in southwestern England remaining in effect until 11:00 a.m. on Friday, and parts of northeastern England extending until noon.
In terms of public health protection, the UK Health Security Agency has activated cold weather health alerts for England. Northwest England and surrounding areas are under an amber alert (in effect until 8:00 a.m. on Saturday), while other regions remain under yellow alerts. Authorities have advised close attention to the health and medical needs of the elderly and other vulnerable groups.
The cold wave has led to school closures in several areas and power outages for some households. However, rail services are gradually resuming normal operations. Meteorological authorities stated that November 21 marks the final day of the cold wave’s influence, after which temperatures are expected to rebound to between 3°C and 8°C, with generally mild and dry weather conditions.
05 Cloudflare Outage Triggers Widespread Internet Disruptions
On the evening of November 18, the internet industry was rocked by what was described as a “once-in-a-generation outage,” as global internet infrastructure giant Cloudflare experienced a worldwide service failure. According to outage-tracking platform Downdetector, more than 10,000 incident reports were linked to Cloudflare’s network infrastructure services. As a provider of security and acceleration services, Cloudflare supports the operation of approximately one-fifth of websites globally.
At around 11:00 a.m. UK time on the day of the incident, the outage fully broke out and spread rapidly across the world. The social media platform X temporarily displayed “internal server error” messages, while Spotify and ChatGPT experienced loading issues. Facebook and various gaming platforms were also affected, leaving millions of users unable to access services normally.
Cloudflare responded swiftly, stating that the outage was caused by internal service degradation triggered by the abnormal expansion of automatically generated configuration files, which led to a software failure. The company emphasized that the incident was not the result of a cyberattack. Cloudflare confirmed that the issue had been identified and largely resolved by around 1:00 p.m. the same day, with only intermittent instability potentially remaining in a small number of services.
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