The report, which analyses enquiries made to the company by Brits buying property abroad, found that between January and May France had increased in popularity by 45 per cent.

According to the data for May, France was the top destination for Brits looking to buy property abroad: 29 per cent of enquiries made to HIFX were from Brits hoping to make the short property hop across the Channel. In contrast, 23 per cent of prospective buyers cited Spain as their destination of choice, while Bulgaria attracted 11 per cent of enquiries and was the destination with the third-highest level of enquiries.

Mark Bodega, HIFX's marketing director, comments that leaseback properties are behind France's march to prominence this year. "Every month we are seeing more and more enquiries relating to leaseback properties and it seems promises of hassle-free 'guaranteed' rental returns, and a 19.6 per cent VAT discount from the purchase price, are proving very attractive to the less wealthy buyer."
 
Leaseback schemes enable Brits to buy a French holiday home or investment property and cover most if not all of the mortgage costs with a guaranteed rental income per annum, typically 3 to 7 per cent of the price paid for the property. The rental income is guaranteed by a large management company that rents the property on your behalf for, typically, nine years
 
As an example of leaseback properties currently available, Your French Property is marketing apartments in a development in Marina du Port, which is situated to the south of Arles and to the west of Marseille in the South of France. Here, properties are available from 100,000 euros, and come with a nine-year leaseback agreement delivering a 4.12 per cent rental return per annum.

Alternatively, for those not interested in leaseback developments but still keen on buying French property, A Place in France has just released apartments and villas in a gated residence in the Mediterranean town of Vinassan, where apartments are available from 126,500 euros and villas from 185,000 euros.

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Read other articles about property in France:
Marseilles shakes off its rough image
Unlock the rental potential of your French home
French property prices on the increase

Article first published on 3 July 2006