Brits bounce back in french property market

Momentum is building for Brits in France, particularly in Languedoc-Roussillon Photo: MiguelGP

Leggett Immobilier has reported that British buyers make up almost 1 in 4 sales of French property to non-residents in the first six months of 2014.

The agents attribute the demand, particularly centred upon Languedoc Roussillon and Midi Pyrenees, to confidence in the UK economy and property market, which is higher than some other European countries. France's lifestyle appeal remains strong too, although both factors are boosted by the crucial factor: low interest rates.

Continued low rates are making financing for French real estate more affordable compared to previous years.

"You can currently get a fixed mortgage with 80% loan to value at around 3.25% or a variable rate with 80% loan to value at around 2.60%. With the overall fall in property prices we have seen over the last couple of years many of our buyers have said that they see this as a window of opportunity," explain the agents.

A small increase in the cost of borrowing over the second half of 2014 would have "little or no effect" on demand, predicts LEggett, although a dramatic rise could dampen momentum.

Trevor Leggett, Chairman of Leggett immobilier, comments: "Our half year figures are in and it's clear that UK buyers are back in force. The first six months of 2014 show an overall increase in sales of 35 per cent and our pipeline of “offers accepted” and “contracts exchanged” has doubled over this period. This gives us confidence that this is a clear trend in the market place which will continue throughout the year."