France still attractive

France is attracting increased levels of interest from UK-based property investors according to experts. The country's popularity is helped by no serious impact from the credit crunch currently beleaguering the US, faster Eurostar rail services from London and new low cost airline routes this summer.

Currency exchange firm HiFX said that last year France accounted for more than a quarter of all the enquiries it received from prospective buyers. Ski resorts such as Meribel and Courchevel were highlighted as especially popular locations, despite their relatively high property values.

Mark Bodega, director of HiFX, said: ‘Prices are higher in well-established resorts but the rental yields also remain consistently high.' He added that France's close proximity to the UK was one of the main reasons for its popularity among British buyers with the fact it is serviced by numerous low-cost airlines helping draw people to the country.

It is also one of the most popular places for those moving abroad. 'France is one of the most popular destinations for British expats. A growing number of people are setting up home in France every year,' said Marjorie Mansfield of financial advice group Siddalls.

All signs point to the French property market shrugging off the effects of the credit crunch. French banks have been offering a number of mortgage products which are helping to keep the market strong. 'Cheaper fees, higher value mortgages and products targeted specifically at non-resident buyers are helping to shore up the market,' explained Matthew Weston, who specialises in overseas mortgages for Blevins Franks.

All this is backed up by the Association of International Property Professionals (AIPP) whose latest figures shows that the number of overseas transactions went up by 21% to 240,000 last year. Many of these were in established European locations such as France, Portugal and Italy.

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