Sterling boost for eurozone property

The pound has risen in value against the euro following new indicators that the UK economy is improving, something that could make it cheaper to buy property overseas.

Sterling rose above EUR1.17 in trading today - its highest level in 2009 - after figures from the National Institute of Economic and Social Research indicated that the UK economy started to grow again in April and May.

Buyers of overseas property may now be able to stretch their money further than has been the case previously this year, making it cheaper to buy in countries such as France, Spain, Portugal, Italy and Cyprus.

At the start of this year the two currencies were near parity in value.

The report said the evidence appears to show that March represented the "trough of the depression" and that the recession may now be over.

Such an improvement would be "coherent with the broader picture of stabilisation" revealed by other recent economic indicators, it added.