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Britons bringing bargains for investors

7th September 2009 | back to article listings BACK    print this article PRINT

Since the onset of the credit crunch, one of the notable features of international trade - be it in homes, holidays or any other commodity - has been the weakness of the pound against a basket of foreign currencies. For many, this has made a range of overseas prospects more expensive.

The combination of a weaker sterling and the recession has led to many Britons looking to take cut-price holidays at home - a trend dubbed 'staycationing' - and the same may be said about buying property in some countries. While sterling has recovered much of the ground it lost last year against the dollar, being worth nearly 30c more now than in February, the British currency continues to trade at a lower than normal level against the euro, even if it is no longer close to parity, as it was around the turn of the year.

For people thinking of buying in France, this factor may have put some off. But other influences may now be having a greater impact on the situation, as a feature in the Times analyses. It would appear, perhaps ironically, that some French properties are getting cheaper due to the recent signs that values in the UK are on the rise.

Brittany-based Mary Hawkins from estate agency Leggett Immobilier noted rep that many of the sellers in the region are Bretons, but not all, remarking: "We are also seeing long-term English residents in Brittany now wishing to return to the UK and selling their French homes at less than current market value to secure their foothold on the UK property ladder once again."

As for the locals themselves, she told the newspaper: "Bretons are selling their traditional houses and opting instead for newly built bungalows, so there are a number of stone cottages that are competing for potential buyers."

Both these factors may appeal to British investors. In the latter case, stone cottages may appeal not just as second homes, but also as possible holiday rental accommodation of the kind that might attract those looking for a bit of traditional French ambience. In the former, the situation may offer buyers not just bargains, but also the chance to make sterling payments to people who will then avoid the cost of changing currencies and sink those funds into UK properties.

That the drop in prices can more than counteract the weakness of the pound was noted last week by the Daily Mail. It revealed that some deals are available now with as much as 30 per cent knocked off the original asking prices. This, it established, meant that even a home bought when a pound was worth €1.50 in 2007 would be cheaper now.

So it seems that the bargains being offered in France now could be providing a fine opportunity for Britons, with or without a good exchange rate.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/4977.html. Alternatively, please see our full press release archive.

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