UK property investors 'still gaining' from Italian homes

British property investors who bought in Italy in recent years have seen the sterling value of their assets increasing despite the economic situation, new research has indicated.

A study by the foreign exchange team at investment firm Close Treasury found that those who acquired homes in the country using euro in June 2005 would still be better off in sterling terms by 65 per cent now.

This has been caused by a 30 per cent jump in property prices over that period and a 27 per cent appreciation in the value of the euro against the pound.

According to the researchers, a property bought a year ago would be worth ten per cent more due largely to the strength of the multinational currency, despite values rising only three per cent in this time.

Such a situation may prompt investors to consider buying in Italy, not least as the prospects for prices there may be enhanced by the fact that its economy is performing better than Britain's at present.

While the third-quarter figures for gross domestic product showed that the UK is still in recession, data from Eurostat revealed that Italy started seeing growth again in the third quarter.

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