Base rate cut 'could benefit French property market'

Yesterday's base rate cut by the Bank of England's monetary policy committee could help investors looking to purchases property in France, one finance expert has suggested.

David Mbaziira, marketing manager of Currencies Direct, told French Property News that the cut, which has brought the UK base rate down to 1.5 per cent, is helping the exchange rate between the pound and the euro to become more favourable.

"Vendors and agents, particularly in France, will seek to capitalise on this influx and as an alleged European recession creeps ever nearer prices should stabilise," he told the news source, adding that investors may choose to "relocate their assets" as a result of mortgage products in the UK getting cheaper.

Investors who have benefited from the rate cut may wish to consider purchasing ski resort property in the country.

A report from market analyst Protourisme found that accommodation in the Alps and Pyrenees was over 75 per cent full at the start of the winter sports season.
 

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