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OCTOBER 2008
Agents in Languedoc-Roussillon have confirmed that Brits are holding back on property purchases in the south of France as a result of the current economic crisis, an understandable nervousness about their financial position, and a feeble pound/expensive euro scenario.
Indeed, the pound/euro story makes French-based Brits wince. In 2002, it was not uncommon to be able to buy euros at rates of €1.43 - €1.44. Compare those rates with mid-March 2008, when sterling slipped through €1.29 on its slide down to €1.23.
Sterling's average price in summer 2008 was around 1.27, touching €1.28 in late August, 13 per cent lower than the same period in 2007; at the time of writing this article, the rate is €1.25.
No-one could claim this is good news for Brits looking to buy Languedoc property, but for thoughtful potential purchasers keen to take advantage of the situation, there are a couple of interesting opportunities.
Bear in mind that there was no increase in prices of French property during the first six months of 2008; the market has gone as still as a millpond, meaning that if you have the cash to splash, now is the time to make those ripples.
Buyers in France, particularly “primo-accédants” (first time buyers) are facing the same problems of rising cost of living and reduced disposable income, so they are holding back on their property projects, meaning that home buyers with funds are welcomed right now by Languedoc property agents with open arms.
Owners unable to sell second homes are resigning themselves to long-term winter lets to tide them over the next six months, meaning that for Brits dead-set on relocating to the Languedoc (and indeed other parts of the south of France), there should be an increased selection of homes to rent.
This is good news: renting on arrival in France is always advisable (“try before you buy” should be the relocator’s mantra). It allows newbies to take stock of the area and decide exactly what and where to buy - when the time is right.
For a selection of some of the very best Languedoc-Roussillon holiday- and long-term rentals, see creme-de-languedoc.com/findrental.php
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