Sarkozy seeks to boost market

President of France Nicolas Sarkozy has unveiled a series of proposals aimed at bolstering the French property market...

Moves announced by the president include interest-free loans for energy-efficient home improvements, a raising of the income threshold under which buyers can have their mortgage protected by the Government and the buying up of 30,000 new homes to help the construction industry.

Although such moves may help keep the market stable, Mr Sarkozy has also said there needs to be a good supply of property bargains, which means there should not be too much house price inflation.

He stated: "A sector in which prices have doubled in ten years is a sector that was preparing a crisis for itself."

A stable housing situation in France may be attractive to overseas property buyers.

Managing Director of French property specialist firm VEF Trisha Mason said last week that French prices are neither rising nor significantly falling just now.

Source: Hot Property