French Housing Market

France has been a popular destination for UK residents looking for a second house. Buying a house in France provides many benefits.

• House prices are much lower than in the UK.
• There is a greater potential for capital growth. The Ratio of House prices to income is 65% in France, but, 146% in Britain.
• Better weather

French House Prices

• Because of the potential in the French housing market, the past few years have seen strong house price growth. House prices have increased 210% in the past 12 years, since 1995. This has led to a great return for those British investors who have already bought a house in France.
• However, the prospects for future house price growth are less certain. These are some of the factors which will affect the future French Housing market
• Supply constraints are much lower in France than the UK. In 2006, a record 420,000 houses were built. (This compares to less than 200,000 new houses in the UK). Therefore, this glut of houses will definitely put downward pressure on house prices.
• Like any Country the price of French housing can vary depending on the usual factors such as location, state of repair. There are still many bargain in the countryside for houses that need some renovation.
• The New president Nicolas Sarkozy is said to favour homeownership. If there was a shift in French attitudes it would definitely encourage greater demand to buy houses. This might cause long term house price growth.

Related

• Getting a Mortgage for French properties
• UK Housing Market
• French Property Prices
  
• French Housing Bubble set to burst