Words: Ashley Rigg
Published: 27th Octoctober 2009
French property market surge
French residential property prices rose 0.1% in September and are now up 2.8% in six months according to figures published by The Federation Nationale de l'Immobilier (FNAIM).
Although prices over the last 12 months have fallen a total of 7.8% and there is renewed optimism that the upward movement in September will be the start of a trend that sees the country’s real estate market recover in 2010.
The mortgage market is also showing positive signs of recovery with Athena Mortgages reporting a 21% rise in mortgage enquiries in the third quarter of the year compared with the second quarter.
While mortgage finance in the UK remains difficult to secure, especially at higher LTVs, the French banks continue to lend to borrowers with smaller deposits making the French property market more accessible for overseas buyers than in many other destinations.
Euro restricting British buyers
Although the news from France is genuinely positive, the market for British buyers is still being hampered by the weakness of the pound against the Euro. The news that the British economy is unexpectedly still in recession on Friday last week means the government is likely to continue printing money, devaluing sterling; and many commenter’s are now predicting a run on parity against the Euro early in 2010. Bad news for anyone selling in France banking on a speedy return of the British buyer.
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