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Maureen McLeod owns a large, 200-year-old house in a picturesque corner of the Dordogne – the sort of property that British expatriates once rushed to buy. Two years after putting it on the market at €435,000, however, she is still there.
“It’s a beautiful area and a beautiful house and I had someone here looking at it just three weeks ago,” said Mrs McLeod, from Aberdeen. “But because of the British property market and the exchange rate, they didn’t want to go through with the deal.”
Mrs McLeod’s experience is an unwanted novelty for residents of the département of southwest France known as Dordogneshire. The stream of British buyers who sent house prices spiralling upwards has turned into a trickle, prompting some to suggest that Britain’s love affair with the Dordogne may be at an end.
“I used to do 70 per cent of my business with the British – that’s down to 20 per cent at most,” said Alexandra Bonoron, an estate agent in Sarlat.
Vincent Barnérias-Desplas, a local solicitor, said that the end of l’invasion britannique had put the brakes on the market. “I’ve been doing this job for 15 years and it’s the first time that I’ve seen sellers accepting less than they wanted. Prices are coming down by €10,000 here and €20,000 there.”
Mrs Bonoron believes that the fall marks a turning point in Britons’ enthusiasm for the Dordogne, where 25,000 have settled over the past four decades. Many have renovated crumbling cottages and ruined farms with a view to selling them on at a handsome profit. But Mrs Bonoron said that they had driven prices to unrealistic levels and that the bubble had burst. British buyers were looking elsewhere – at cheaper parts of France or at eastern Europe – and the French would replace them only if prices fell.
“The British were infatuated with our region at one time. You had ten customers for every property and they would almost fight among themselves to get it. But that wave is finished. Prices here are 30 per cent above market value and sellers need to accept that.”
She said that 25 estate agents had sprung up in Sarlat to meet demand. “Three have shut recently and two are in receivership.”However, other estate agents said that the slowdown was simply an effect of the sub-prime crisis. Charles Gilloley, who has an agency in Le Bugue, said: “Things have been a bit slow in the past three months but I’m not worried yet – although I might be if it carries on.”
He said that buyers were unable to sell their homes in Britain and had been hit by sterling’s 10 per cent fall against the euro. “They may be holding off, but I don’t think they no longer want to live in this part of France.”
Gordon Hall, a Briton who restores and sells properties in Dordogne, agreed, saying that house prices in rural France would rise, albeit at a slower rate. “It won’t be like it was seven or eight years ago, but there will still be steady growth.”
Mrs McLeod, who put her five-bedroom house in Verteillac on the market when her children grew up, said: “It’s lovely here, I’m in no rush.”
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My father has retired to this wonderful area and it has bought us much pleasure doing his house up and integrating with the friendly and supportive locals. As long as you make effort with the language and are friendly and affable, the French are warm and welcoming and go out of thier way to help you
Sarah, St Pompon, France
We bought a property in the heart Sarlat, running it as a B&B since 2004. We only know of less than 10 English expatriates living in the area although its difficult to tell when you hear English voices if they live here or are just visiting. If they are wearing football shirts or silly hats and bum bags then they are tourists.
The population of Sarlat is about 10000 of which 1000 are Portuguese who are the best Artisans. I guess English to be about 1%-3%
Our main customer base is easily Australian followed by US then UK. which surprised us. A reason maybe is that English think they can book at the last minute which they cannot as the Aussies and Yanks will start booking in September of the previous year.
roy, sarlat, FraNCE
Regrettably even before the recent depreciation of sterling France had acquired the infection of "Rip off Britain" - that is why I have fallen out of love with the country - rocketing prices of eating and drinking out. Admittedly my experience is mostly of their ski resorts where a pint of beer can now cost you £6 and a burger and chips a good tenner. I suspect the introduction fo the Euro was the principal cause of this. Why, for example, can one only find offers for French ski resorts in the next couple of weeks - because Austria and Switzerland offer far better all round value. The same applies to where you buy a property.
Richard, Newton Abbot,
Hello George!!!!! Concur your thoughts. See you in May?
We live quite close to Sarlat in a popular village of 470 souls. There are only 6 or 7 British expats living here permanently. Plus a few with second homes who visit for a few weeks a year. We are certainly not swamping the locals and the French have made us very welcome indeed. Certainly it isn't anything like "Dordogneshire" except perhaps during August. The British who try tointegtrate into village life are made very welcome by most of the French (who have remained here to live) because we invest a great deal of money in restoring our properties and in supporting local businesses (unlike some other nationalties). The beauty of the region, the climate and many other attractions should see this region remaining a popular British destination, both for holidays and for settling here to make a new life. We moved here four years ago and found property prices very reasonable compared to many other regions.
Colin Tozer, Nr Sarlat, France
Paul, Many of the houses being restored by the resident British in the Languedoc are houses that the French, especially the young, don't want to buy, being old village houses with damp, dry rot, etc. As for speculation, if the property isn't your main residence, then you pay 27 percent capital gains - 11 percent of this is social charges - on the sale, so British residents are contributing to French society if they do this. Further, if they renovate and rent out a village house for holidays, they bring much needed business into the area. Sure, prices go up - practically every French person in my street who has put their house on the market recently, has asked me if I know of any English willing to buy it - because they hope to get more for it this way. Human nature I guess!. They don't want to sell to a local for a lower price, and in any case, this local person often looks down on village houses and wants a new place on an estate on the outskirts of the village.
Penelope, Languedoc, France
Another area where the British property speculation disease has spread. Languedoc and Poitou-Charentes should also experience significant falls.
Paul, Coventry,
Other things might explain that. As France is trying to balance its books, it is now the end of free health care for foreigners and there are more investigations into unemployment benefits frauds.
Maybe it has also played a role in deterring newcomers?
Laurent, Reading, UK
As a person who loves the region, with a small house in Flayac near to Verteillac, I can vouch for the beauty and tranquility that the region has. Whilst saying it is in the Dordogne, it is very much away from the normal Brit haunts. The French are wonderful and we have many good friends. There are two key observations I would make. Firstly on the issue of costs, many Brits bought at a seemingly low price but many have invested in derelect of substandard properties, renovating them to a superb standard. Many have done this not as second homes but for retirement. Secondly, that whilst prices may go down, this will unlikely attract a rush By French families to buy a house here. The Dordogne is predominantly agricultural and most land retained within a family structure. I have talked to a number of young people, and their one aim is to head for the cities and to find reasonably paid jobs and break out of the generations of toil the countryside has demanded on the forefathers.
George Bent, Portsmouth, England
Other things might explain that. As France is trying to balance its books, it is now the end of free health care and there are more investigations into unemployment benefits frauds.
Maybe it has also played a role in deterring newcomers?
Laurent, Reading, UK