Retirees "flocking" to France

August 6, 2007, 5:00 pm

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A million British pensioners are receiving their state allowance from overseas, according to new figures from Saga.

But France has become more popular with Brits than Spain because there are fewer established expat communities to annoy them, according to an overseas mortgage adviser.

Matthew Weston, manager of overseas mortgages at Blevins Franks, said that people were looking for a cultural experience and a change of lifestyle rather than a Little Britain Abroad.

"Normally what people are looking for is a peaceful home set in natural surroundings that is in close proximity to a local scene that has a good dose of its own unique culture and entertainment," he said.

A Cluttons France spokesperson said that the French Riviera was becoming very popular with a higher class of Brit who did not want to see "an English man wearing his football shirt in France".

Olivier Morvan said that over-development would affect Spanish property values but the French Riviera was a prestigious area that would retain its value.

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French property market "sheltered"

August 9, 2007, 5:00 pm

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Experts assert that the French property market is by and large sheltered from the current US sub-prime crisis due to a stringent legal framework that will not allow sub-prime risks to penetrate.

Serge Grzybowski, chief executive of property development group Icade, argues that France is protected from this vulnerability as a result of the way in which its mortage system is set up, with banks tending not to lend excessively to mortgage borrowers.

In the US a combination of uncapped floating rate loans and relatively high lending in relation to disposable income leaves many borrowers susceptible to base rate fluctuations.

"Floating-rate loans are often capped in France and banks don't lend more than 33 per cent of an individual's disposable income," explained Mr Grzybowski to the French press, according to Forbes.

He continued to state that French property groups tend to have little exposure to "the more speculative property markets" or foreign property markets.

A spokesperson for Association Integration Kreizh Briezh maintains that UK property investors with an eye on the French market would stand to benefit from French language classes in order to make the process and transition easier.

Overseas property enquiries increase

August 13, 2007, 5:00 pm

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The number of overseas property enquiries from UK investors on is on the increase according to new figures.

Reports from financial services provider Baydonhill reveal that overseas mortgage enquiries have increase by almost a third (30 per cent) during the past year, with brokers reporting increased activity among UK clients.

The key areas of interest are France, Spain, Italy and Portugal, indicative of the fact that traditionally popular locations for foreign property investment are continuing to attract UK buyers.

In light of these trends more than half (52 per cent) of brokers are ramping up their focus on foreign property in anticipation of increased commissions in this area.

"The upturn that brokers are seeing should only increase over the next few years," commented Fiona Watts of Baydonhill.

Meanwhile HiFX reports that British investors are currently cashing in on a boom in international property with an increase in the number of property owners selling their overseas properties.

British investors advised to look abroad

April 2, 2008, 5:00 pm

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Property investors from the UK have been advised to look overseas if they wish to collect good returns.

Homes Worldwide recommended that Britons avoid the domestic market as mortgage rates are rising while house prices are falling.

The website has suggested that investing on the other side of the English Channel could be a more lucrative move, as the French market is currently experiencing growth.

According to the website, house prices in France went up by four per cent last year, while their values are about a third cheaper than the UK.

This means that investors could collect the proceeds of capital growth in a relatively cheap market.

Furthermore, Homes Worldwide believes that France is holding firm in the face of global economic problems.

The website said: "The market does not seem to have been affected by the so-called credit crunch that has unsettled the US and UK markets."

This comes after currency exchange firm HiFX said that last year, France accounted for more than a quarter of all the enquiries it received from prospective property buyers.

Investors 'need to research market before buying'

May 14, 2008, 5:00 pm

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Foreign property buyers from the UK need to carry out thorough research before buying, experts have said.

According to the Your Mortgage website, purchasing a home in Spain or France can be just as stressful a process as buying in Britain.

Therefore, it has recommended that people who are thinking of entering a foreign market try to reduce the likelihood of encountering problems.

The online portal said prospective buyers need to find out as much information about their chosen market as they can.

In addition, it suggested that people try to avoid letting the prospect of buying a dream home cloud their judgement.

Your Mortgage added: "Dedicated research is even more important when negotiating a sale in another country and, presumably, another language."

According to research by A Place in the Sun magazine, France and Spain are currently the two most popular markets with British property buyers.
 

French Property Finance

July 31, 2008, 5:00 pm

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Why it might be cheaper to invest with a euro mortgage...

French property reform 'to avoid risky credit'

September 25, 2008, 5:00 pm

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The conditions that led to the credit crunch will not be allowed to recur in France even as it seeks to extend home ownership, the country's finance minister Christine Lagarde has said.

Speaking about the future of property transactions in France, Ms Lagarde told the BBC: "Expect two conditions - a down payment of 20 per cent of the value of the house plus mortgage [repayments] which will not exceed 30per cent of income."

She added that there is already a good "safety net" in place and there is no sub-prime lending in France.

Those looking to invest in French property may decide it is a safer bet because of the cautious way its banks proceed, preventing the kind of problems seen elsewhere.

Anyone buying a home in France now is likely to get a more appropriate price than in the last few years when some vendors have tried to artificially inflate the figures they were asking for, the founder of French property specialist firm VEF Trish Mason wrote this week.
 

French mortgage lenders 'will lend to Britons'

February 22, 2009, 4:00 pm

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Mortgage lenders in France are still keen on providing homeowner loans to non-residents, it has been claimed.

According to French Mortgage Direct, many of the country's lenders are willing to allow buyers to borrow 100 per cent of the purchase price of a property with a capital repayment mortgage throughout France, deals that were previously only available in selected regions.

Sharon Hill of the firm described the news as "fantastic", adding: "A 100 per cent mortgage will go a long way to help enable the purchase of a French property and could help dreams come true."

She noted that such loans are available at either a fixed or cap and collar rate, with interest starting at 5.3 per cent over a 15-year period on properties priced above 300,000 EUR (263,000 GBP).

Earlier this month French property expert Patrick Joseph described buying property in the country as a "safe investment", noting that interest in the country's housing market still exists despite a recent dip.

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More mortgage approvals demonstrates return to the market for investors

April 11, 2010, 5:00 pm

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An increase in the number of individuals applying for overseas European mortgages is a sign of the rising confidence in the property market, it has been suggested.

Overseas mortgage specialist Conti has reported that March has been its busiest month in terms of applications for almost a year.

The financial services company witnessed an increase of 48 per cent over the period in comparison with previous monthly averages.

Among the more popular destinations for property investors was France, with individuals tempted by the country's accessibility and favourable rental prospects.

Clare Nessling, Conti's operations director, said that falling prices mean that now is a good opportunity for British buyers to enter the market.

"Confidence is definitely growing, but there's also an element of buyers snapping up bargains in traditional hotspots while they have the chance," she explained.

"Even if you're lucky enough to be a cash buyer, it may be worth taking out a mortgage until the exchange rate improves."

Furthermore, potential investors may be interested to note that France is the number one destination in the world for international tourism, according to the World Tourism Organization.

French fixed-rate mortgages 'at lowest ever rate'

September 8, 2010, 5:00 pm

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French fixed-rate mortgages have hit historic lows, making now a good time to search for properties in Languedoc-Roussillon and Rhone-Alpes property.

Some mortgage companies are offering rates as low as 3.3 per cent for a 15-year fixed period or 3.6 per cent for 25 years.

John Busby, director at Athenamortgages.com, said: "For UK investors looking for a safe, long-term investment, second home buyers or people looking to relocate to France, there has never been a better time to purchase French property."

He added that borrowing conditions are as good as they have ever been and property prices are well below their peak, meaning property investors can pick up some real bargains.

The firm stated that it has seen a sharp rise in the number of UK buyers looking to take out a mortgage in August, and September promises to be an even better month.

Figures released by Primelocation last month highlighted that established countries such as France are currently dominating property searches.
 

France popular with Brits buying abroad

September 15, 2010, 5:00 pm

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France is proving more popular than ever with investors buying property abroad, according to mortgage firm Conti.

According to the company's figures, the country has a massive 43 per cent share of mortgage enquiries made this year, marking an increase of 12 per cent and suggesting that a greater number of people are looking at Rhone-Alpes property and Aquitaine real estate listings.

Spain was the second most popular nation in terms of mortgage enquiries, accounting for 24 per cent.

Clare Nessling, Conti’s operations director, said: "The percentage of people enquiring about French mortgages has more than tripled over the last two years, and it’s currently out on its own as far as popularity goes.

"Not to be outdone, however, Spain is still holding on strong, and has experienced an increase in enquiries over the last year, despite the negative headlines, and still accounts for a quarter of enquiries received."

She added that the figures suggest people are favouring tried and tested locations when it comes to investing in overseas property.

Last week, it was reported that French fixed-rate mortgages have hit historic lows.
 

Paris remains popular with British buyers

November 8, 2010, 4:00 pm

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Individuals looking to buy property in France may be interested to learn that Paris is the most popular location for British buyers looking for homes in the country, Overseas Property Professional reports.

According to new French statistics, the majority of Brits living in the country have their permanent home in or around the capital city.

One of the primary reasons that Paris remains popular is the good transport links which exist, the news provider claimed.

"Arts, culture, jobs and rental opportunities attract UK buyers and the latest figures from the French statistics office INSEE showing that 135,000 Britons [are] living in Paris," OPP added.

In addition, the tourist market in the country is also attractive to potential property owners, with many buy-to-let investors reporting that there is no 'out of season' time in Paris.

Meanwhile, French mortgage specialist Athena Mortgages said last week that borrowing in the country is at its lowest level since the Second World War.

Prices to rise in France this year

January 6, 2011, 4:00 pm

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Average property values in France are expected to experience modest rises throughout 2011, while some regions will see significant increases.

This is the forecast from Leggett Immobilier and the FNAIM, which also noted that mortgage rates in the country are at their lowest levels since World War II.

Real estate in the country has had its ups and downs over the past few years, with considerable falls occurring in 2009 - in some areas by as much as 20 per cent - followed by a period of stability last year.

With this increased stabilisation and with prices now standing at more realistic levels, there has been a rekindled interest in these sectors, Leggett Immobilier added.

Trevor Leggett, chairman of the French-based estate agents, believes that the market lows of 2009 are now a thing of the past.

"I have been selling houses in France for over 18 years now and am confident that the worst of the market is behind us," he confirmed.

Prices begin to rise in French property market

January 10, 2011, 4:00 pm

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House prices in France have increased for the first time in eight quarters, new figures have revealed.

Research conducted by the Federation National de L'immobilier (FNAIM) has found that home values in the destination have started to rise once more following a period of stabilisation in 2010.

Speaking to Overseas Property Professional, Tracey Hudson, sales manager at local agency Leggett Immobilier, said that current historically low mortgage rates in the country will prove to be beneficial for the real estate market.

The expert believes that the French property sector will see "a modest rise in prices throughout 2011 with substantial growth in some hot spots".

Indeed, Ms Hudson also thinks that some UK buyers will choose to buy property in France rather than at home so that they do not risk entering the British housing market too soon.

According to the Global Real Estate Trends report, during 2010 France was singled out as one of the top-performing markets - alongside Canada, Australia, Sweden, Switzerland and the UK.

Banks still offering 'good deals' in France

January 30, 2011, 4:00 pm

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Despite an increase in perceived risk causing a slowdown in property lending by banks, those looking to buy property in France can still get a good deal.

Athena Mortgages has highlighted the fact that not all banks in the country have decided to increase their margins, meaning that there is still an opportunity to capitalise on competitive lending rates.

"It is interesting that the market is increasing the prices for long term interest rates, indicating a belief in growth and inflation in the medium term," John Busby, director of Athena Mortgages, said.

"The demand for loans for purchases in France is certainly there and it will be interesting to see what effect if any these increases have."

It comes after a report from the European Central Bank claimed that a large number of banks across Europe have steadily declined and tightened procedures relating to property lending.

This is despite many euro-based banks reporting an increased demand for mortgage loans in the last quarter of 2010.

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French mortgage rates set to rise, firm warns

May 4, 2011, 5:00 pm

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Individuals looking to buy property in France may be interested to learn that higher eurozone inflation could lead to an increase in mortgage rates in the country.

This is according to Athena Mortgages, which claimed that the rise will come on the back of the European Central Bank's (ECB) decision to raise the main interest rate to 1.25 per cent in April.

It comes after two years of the ECB leaving the rate at one per cent and is an attempt by the finance house to ward off inflation.

However, Athena Mortgages noted that there has not been much change in the rates on offer for mortgages in France since the announcement of the increase.

"Markets and banks had in fact already priced in this increase. We have seen an average increase of about 0.20 per cent in the cost of variable rate mortgages, with some banks opting to further increase their margins," said director of the firm John Busby.

But the organisation added that further increases are on the way.

"We should expect further increases to the lowest rates on offer and a flatter market overall as it becomes more expensive for banks to refinance and maintain market beating rates," Mr Busby said.

France top choice for Brits buying abroad

September 28, 2011, 5:00 pm

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Britons looking to purchase property abroad should consider homes in France.

This is because the country has been picked out as the best option at the moment by a Savills report for the Daily Telegraph.

The range of dwellings on offer is among the best in the world, while certain parts of the country - such as Brittany and Normandy - are easily accessible from the UK.

"French banks have continued to lend on second homes, stimulating the market," the report stated.

Prices are bouncing back after taking a 20 per cent drop in the cost of a dwelling between 2007 and 2009.

Other countries that fared well in the study are the US, Portugal and Italy.

The French ski resort of Megeve recently recorded a 4.3 per cent growth in real estate prices in the year to June 2011, according to the Knight Frank Ski Resort Property Index.

Meanwhile, US locations Telluride and South Lake Tahoe saw prices fall annually.
 

French property market 'has potential'

November 17, 2011, 4:00 pm

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Investors looking for a property abroad may want to consider France, one expert has claimed.

Tim Harvey, from euro mortgage specialists Offshoreonline.org, explained that it is currently easier to arrange a high loan-to-value mortgage in France than it is in the UK.

He added that mortgages for up to 85 per cent of a French property's sale price are "widely available", with rates of around 3.45 per cent.

Mr Harvey also made some suggestions about where to buy real estate in the country.

"High -quality areas such as the Cote d'Azur and towns such as Nice and Cannes will always have a special appeal as second homes, but also as rental propositions, as the area has such strong leisure and business traditions," he stated.

Another part of the country that may attract investors due to its robust tourism industry is the French Alps.

The Savills Alpine Property Market Spotlight highlighted the resorts of Val d'Isere, Courcheval and Megeve as being among the most expensive in the region.
 

French property market 'a good target for UK buyers'

March 25, 2012, 5:00 pm

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British buyers are able to get a more favourable mortgage rate in France than in any other European country.

This is the assertion of Clare Nessling, director at Conti, who explained purchasing real estate in France and elsewhere overseas has become "much more affordable" due to the predominantly low interest rate environment in Europe and the falling value of property in many nations.

She went on to point out that the French mortgage market has fared better than the majority of its counterparts in Europe because it has historically taken a more cautious approach to lending.

"It currently offers the widest range of finance options and best-available rates in Europe for UK buyers. It is in a relatively secure situation and loan-to-value ratios are still high," Ms Nessling stated.

The attractive mortgage terms provided in France may be one reason behind its popularity as a retirement destination.

Earlier this month, managing director of The Villages Group Danny Silver drew attention to a survey by the National Association of Pension Funds, which found 34 per cent of people nearing retirement age would consider moving abroad to enjoy a lower cost of living. Mr Silver highlighted France as the ideal country to choose due to its food, culture and proximity to the UK.
 

Is France's property market set to cool?

April 4, 2012, 5:00 pm

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There are indications the French property market may slowdown as the year progresses, with a number of factors helping to cool the sector.

According to a Global Property Guide report, the threat of a recession in the eurozone and the forthcoming presidential elections - which are due to be held in April and May - have made purchasers "more cautious".

The publication cited figures from the National Association of Real Estate Agents in France, which revealed price growth in the final quarter of 2011 was considerably weaker than the previous three-month period.

Between October and December last year, the value of property climbed by 1.04 per cent annually, while in the third quarter, prices rose by 7.1 per cent compared to the same period in 2010.

Last month, Clare Nessling, director at Conti, revealed the French mortgage market offers the most attractive rates in Europe for British buyers. She explained it is "in a relatively secure situation and loan-to-value ratios are still high".