British investors advised to look abroad

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.