Mark Carney the Bank of England’s Chief’ has recently warned that UK house prices could diminish by a third in case of a no-deal Brexit. This statement has of course shaken the tranquillity of some more experienced investors that are now turning their eyes to the other side of the Channel to minimise the worst possible impact of Brexit.
In fact, while the British property market is nowadays facing uncertainty, the possible exit of the UK from the European single market hasn’t impacted the French property investors. At the moment the UK and France’s buy-to-let markets experience similar rental returns, therefore, being France a more stable long-term environment, many investors are now making the move to this country.
“Now could be the perfect time for making the most of what is currently a bargain French market. French mortgage rates are at an all-time low, and non-resident buyers can access rates of 2.15%, typically fixed for around 20 years, the length of the mortgage (…) Rental returns are averaging between 3 and 5% per year, similar to those of UK buy-to-lets; but without the anxiety of what happens following a hard Brexit.” (Investor Square | Investor Reviews and Online Community, 2019)
The very popular formula of Buy-to-let is booming, with nearly 6 million rented properties as the current French law defends landlords against untenable behaviour from tenants.
In addition to the many financial benefits, many potential investors are attracted by the possibility to own a first class holiday property in popular resort areas such as Paris, the Alps or the Cote D’Azur.