A surge in the number of enquiries by UK investors looking to buy properties in France, which has seen new enquiries from prospective buyers more than doubling in May 2010, has been recorded by French mortgage specialist Athena Mortgages
May was also Athena Mortgages’ busiest month for new enquiries in any single month in the past 12 months.
Interest from UK buyers has gathered momentum since the start of the year, and new enquiries from Brits looking to purchase in France were up by 72 per cent in the first quarter of 2010 compared to Q4 2009.
Also, the first quarter of 2010 saw the highest level of enquiries by UK investors in any quarter since Q4 2007.
With property prices in France rebounding over the past 12 months, foreign investors are starting to feel more confident about re-entering the market, says Athena Mortgages.
The new build market, in particular, is performing strongly. Prices in Paris and Marseille, for example, are up by 8 per cent and 11 per cent respectively, compared to this time last year.
This increased confidence amongst UK investors in French
property as a safe long-term investment, is also reflected in the number of enquiries that Athena Mortgages received in February and March this year, that have progressed to the application stage and all the way through to a firm mortgage offer being made.
France is particularly appealing to UK investors at the moment, because of the weakening Euro, and the availability and competitiveness of mortgage products being offered by French banks to attract foreign investors.
“Since the beginning of this year, we have certainly noticed a change in the mindset of UK investors, and in particular the last two months we have taken a lot of calls from prospective buyers who are serious about investing in France,” said John Busby, director, Athena Mortgages.
“There is definitely a feeling amongst investors that this is a pretty good time to buy in France, with the value of the Euro plummeting in the last couple of months, the European Central Bank rate likely to remain low for some time yet, and the relative stability of the French property market.
“There are also more competition mortgage products coming onto the market, as French banks look to attract foreign investors.
“Also, with concerns over the UK Government’s proposal to hike Capital Gains Tax on second homes, we are predicting that more UK investors, who are planning to realize their gains in the domestic buy-to-let market, will turn to the French property market as an attractive and safe long term investment option.”
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