French Holiday Homes in Sales Slump

According to the Daily Telegraph the sales of French holiday homes have slumped. The fall in sales is particularly sharp in traditional British havens such as the Dordogne. The problem is caused by a logjam in the British housing market. French rural properties are generally bought by more affluent British consumers - sometimes in the runup to retirement. With the British property market in freefall, prices are down 12-13% on 2007, potential buyers of French property are unable to raise the necessary cash.

Humberts Crunched by Property Slump

FT.com reports that leading estate agents Humberts have suspended their shares pending a clarification of their financial position. Humberts are a highly reputable and long established firm of chartered surveyors and estate agents. The news comes on a day when it was reported that despite successive cuts in BOE interest base rates, mortgage companies continue to push up the interest rates charged to borrowers. Humberts specialised towards the upper end of the housing market. And it would appear that it is this part of the market that has seen the greatest fall in transaction activity.

A year ago Humberts' shares traded at over 80 pence (See chart).