Today’s Exchange Rate Report
As of 11:00 on 22 December 2025, the real-time market exchange rate between the British pound and the Chinese yuan stands at 1:9.4349. Overall movements last week remained mildly volatile, mainly influenced by the UK’s November CPI year-on-year figure falling to 3.2%, its lowest level in eight months, easing pressure on the central bank to maintain a tight monetary stance.
This Week’s Key Events
UK to rejoin the EU student exchange scheme
UK unemployment rate rises above 5%
UK house prices expected to recover in 2026
UK doctors begin a five-day nationwide strike
Princess Kate and family return to Christmas luncheon
01 UK to Rejoin the EU Student Exchange Scheme
On 17 December, the UK government officially confirmed that it will rejoin the EU student exchange programme in 2027 — the Erasmus student exchange scheme, now known as “Erasmus+”. The move is widely seen as an important signal of warming UK–EU relations.
Launched in 1987 and named after the Dutch humanist Desiderius Erasmus, the programme covers student exchanges, primary and secondary education, adult education, and sports, among other areas.
Under the new agreement, UK and EU students will be able to study at each other’s institutions for up to one year, with credits counted toward their home degree programmes and without paying additional tuition fees. The UK is expected to contribute £5.7 billion annually, four times its previous contribution, though a 30% discount applies due to the expanded scope of the programme.
Following Brexit, the UK introduced the Turing Scheme as a replacement for Erasmus+, but it only supports outbound UK students and offers more limited funding. Nell Eustace, a UK student currently studying in Italy, said Erasmus+ provides more comprehensive financial support for exchange students, expressing happiness at the programme’s return while regretting that she will not benefit personally.
At the same time, the decision has sparked widespread debate. Supporters argue that investing in youth exchange is an investment in the country’s future, helping broaden young people’s horizons and rebuild academic ties between the UK and Europe.
The Conservative Party has voiced strong objections. Shadow Foreign Secretary Priti Patel criticised the agreement as a betrayal of Brexit commitments, accusing it of drawing the UK back under EU influence. Others have raised concerns that restarting the programme could increase migration pressures. Debate surrounding the £5.7 billion annual cost remains ongoing, highlighting deep divisions within post-Brexit British society.
02 UK Unemployment Rate Rises Above 5%
On 17 December, data released by the Office for National Statistics (ONS) showed that the UK unemployment rate rose to 5.1% in the three months to October, marking another high since January 2021 and aligning with market expectations. Labour market conditions continue to weaken, with young people and the retail sector particularly affected.
Figures show that unemployment among those aged 18 to 34 reached 8.7%, the highest among all age groups. In November, the number of paid employees across the UK fell by 38,000 month-on-month.
Private-sector wage growth slowed to 3.9%, the lowest level since late 2020, while average public-sector pay growth rose to 7.6%, widening the gap significantly. Meanwhile, the redundancy rate over the past three months reached 5.3 per 1,000 employees, the highest since February 2021.
By industry, retail emerged as the hardest-hit sector, with employment falling by 74,000 over the past year and total job numbers reaching a record low. The British Retail Consortium noted that retail jobs declined by more than 2% year-on-year, with 355,000 positions lost over the past decade, as low-paid sectors face pressure from rising employer National Insurance costs.
The data were released ahead of the Bank of England’s interest rate decision. Many economists have urged the central bank to look past public-sector wage figures and consider cutting rates.
03 UK House Prices Expected to Recover in 2026
On 15 December, the UK Building Societies Association released an industry forecast suggesting that UK house prices could rise by between 2% and 4% in 2026.
The organisation cited two key drivers: income growth continuing to outpace house price increases, and a further modest decline in interest rates, both of which are expected to improve housing affordability and gradually revive market activity.
These expectations align with current market trends. Data show that by September this year, the average mortgage loan in the UK had reached a record high of £210,800, reflecting sustained demand in the housing market.
Experts predict that UK residential transaction volumes will remain stable between 2026 and 2027, at around 1.2 million homes per year, broadly in line with the market size seen in 2025.
Alongside improving market sentiment, regulatory reforms are also underway. The Financial Conduct Authority (FCA) is advancing the modernisation of mortgage regulations, with plans to launch policy consultations in early 2026 and implement the first set of new rules by the end of the year.
Industry observers believe that, with continued improvements in income levels, interest rates and regulatory frameworks, the UK housing market is likely to enter a phase of steady and gradual recovery.
04 UK Doctors Begin Five-Day Nationwide Strike
On 17 December, UK media reported that the British Medical Association (BMA) confirmed hospital doctors would proceed with a five-day strike after rejecting the health secretary’s proposed negotiation package, marking a further escalation in the dispute over pay and career development.
BMA Junior Doctors Committee Chair Jack Fletcher said union members had reviewed the government’s proposal and welcomed a legislative provision prioritising UK-trained junior doctors for specialty training posts, giving them preferential access during application processes.
The proposal also included a commitment to create 4,000 additional specialty training posts over the next three years, with the first 1,000 expected to be delivered before 2026. However, it did not address pay increases. With pay remaining the core issue, a ballot with a 65% turnout saw 83% of junior doctors vote in favour of continuing strike action, while only 17% supported calling it off.
With flu season underway, Health Secretary Wes Streeting criticised the strike as selfish, irresponsible and dangerous, stating that the government could not afford to pay salaries above current levels.
05 Princess Kate and Family Return to Christmas Luncheon
On 16 December, UK media reported that King Charles hosted the annual Christmas luncheon at Buckingham Palace. For the 75-year-old monarch, who is currently undergoing cancer treatment, the upcoming Christmas has been privately described as one that needs to be “especially meaningful.”
Royal insiders said this year’s guest list was carefully considered, reflecting the King’s desire to focus on close family. Attendees included Prince William, Princess Kate and their three children, as well as Princess Anne.
The appearance of Princess Beatrice and Princess Eugenie also attracted attention, with observers interpreting it as an effort by Prince William to shield his cousins from controversy surrounding their father, Prince Andrew. Prince Andrew and his former wife, Sarah Ferguson, were notably absent from the event.
The gathering also highlighted current dynamics within the Royal Family. It was reported that Prince Harry and Meghan will not return to the UK to spend Christmas with the family, but plan to speak with King Charles by phone on Christmas Day.
Buy a property in the UK with a team of professionals who know the UK property market best｜ Lansha Group
Founded in 2014 and headquartered in Paddington, London, Lansha Group has become one of the top 100 seafarers in the industry in the past 10 years, providing one-stop services for international property. We have many years of professional experience in dealing with all aspects of the property market, from choosing a property to opening a home, loans, solicitors, tenancy management and second-hand property sales. We provide 24-hour real-time service to our global clients, assisting them in dealing with the cumbersome formalities of property purchase and home inspection, so that they can move into their homes or invest in them with peace of mind. If you are looking to invest in the UK, Lansha Group has a professional investment team to assist you in selecting the best properties, analysing the housing information and regional development, and making a comprehensive assessment to choose the ideal home. Visit Lansha Group's website now to view our selection of properties and choose your dream home!
If you have any questions about buying a property in the UK, please feel free to contact us directly.
