International property "hugely dependent" on sterling

The strength of the pound against the euro will have a noticeable affect on international property, according to a new report.

A study from the National Association of Estate Agents International (NAEA) has predicted that the worldwide housing market will be "hugely dependent on the strength of sterling".

The forecast suggested that international purchases between the UK and Europe will remain fairly stable until the balance of supply and demand stabilises and the pound strengthens against the euro.

Linda Travella, spokeswoman for Italy at NAEA International said: "Even though the UK appears to have fallen behind other economies in the race out of recession and economic recovery, sterling has held pretty firm against the single European currency."

She added: "For the first quarter of 2010 the number of international buyers is expected to remain low and therefore offers are more likely to be accepted making it a very good time to purchase an overseas property."

At 14:00GMT today (February 1st) one pound sterling bought 1.145 euros.

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Posted by Eleanor Ward