Strength of sterling 'could put off investors'

Recent exchange rate improvements could force UK-based investors to distance themselves from the overseas property market until sterling reaches its peak, it has been suggested.

According to Rightmove.co.uk, real estate speculators may wait for the pound to achieve its strongest point against the euro before buying property, as they try to call the "top of the market".

Robin Wilson, head of overseas at the company, explains that rather than encouraging people to buy, the improvement in rates could have the opposite effect.

"Without time pressure, rising sterling rates may have the opposite effect as people sit on their hands and try to call the top of the market before splashing out," he said.

Meanwhile, the Worldwide Property Group reported that 65 per cent of individuals questioned believe that now is a good time to buy a foreign home.

Among some of the more popular locations for potential investment are the European destinations of Spain, France, Italy and Cyprus.