The new French president, Nicholas Sarkozy, has suggested that he will overhaul the inheritance tax laws, resulting in most people of  'average wealth' not having to pay inheritance tax on French property. If this occurs, the families and beneficiaries of many overseas buyers of French property will face lower costs during the transfer of property after the death of the owner.

"If this happens, I believe we will see the property market in France pick up pace significantly and French and foreigners alike will be encouraged to invest," says Niclas Dowlatshahi, Managing Director of Leapfrog Properties Europe. "The French property market is notoriously safe and if this change happens it will also offer an excellent tax break. I imagine we will see acceleration in the price rise of property in France and increased ownership and buy to let from the French themselves."

If Sarkozy does drop inheritance tax on property for those of average wealth, this may have a huge affect on the average French property buyer's behaviour.

"More French people will be motivated to purchase property rather than to rent, which they have historically always done," notes Frances McKay from Francophiles Ltd. "This will result in the prices rising at a far greater rate than they already have and France could well become a country where big profits can be made from buying and selling, a normally British phenomenon."

Unsurprisingly, many property agents are welcoming the changes it is hoped Sarkozy's rule will bring as long overdue.

"Lets hope this new president does give some of the French bureaucracy a shake up generally," says Jane Dinsdale from JDS Property Liaison. "One of my English clients whose property we sold in the Dordogne suggested French estates are still working in the dark ages! I believe changes to the inheritance tax could bring even more properties onto the market, which families in the past kept passing down to the next generation."

Also hoping to make the French property buying process easier is property investment specialist Assetz. The company recently launched its own French leaseback product offering a more flexible option for overseas property investors.

Owners of Assetz property can pick and choose when they want to use the property and will receive an agreed rental income. The scheme is suitable for investors who want to commit for the short to medium term, as owners can choose to opt out of the leaseback agreement after just five years with no penalties, instead of the traditional nine years. The owner can also sell the property on, free of any leaseback agreement.

Stuart Law, Managing Director of Assetz, said: "Although French leaseback remains one of the most popular choices for British investors in France, many are put off by the length of the commitment required and the inflexibility concerning personal use of the property. This new scheme offers investors a solution to both of these concerns."

Assetz is currently marketing the Residence le Pinede development on the shores of the Mediterranean. The development is made up of 15 three-bedroom villas with garages, terraces and private gardens, along with 41 one-, two- and three-bedroom apartments. All the properties are available either as a traditional holiday home or as an investment opportunity through the Assetz leaseback scheme, costing from €119,500 (£81,577).

VEF is also marketing a French property development (pictured) of various styles of accommodation. Colline Bellevues consists of one- to four-bedroom apartments with access to a large private sports complex, a swimming pool, two tennis courts and a club house; prices range from 235,000 to 2,170,000 euros (approximately £159,000 to £1.46 million).

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Related article:
The Sarkozy solution: A British view of France

Article first published 13th June 2007