France avoids credit crunch and market will remain steady

THERE are several articles in the press today reporting that France has managed to avoid the credit crunch. French banks have not changed their lending behaviour compared with recent overhauls in the UK, Spanish and Irish institutions.

Other reasons given are that french property prices start much lower than the UK. But people have the same purchasing power in France as the UK.

And finally, President Sarkozy's new tax breaks offer interest relief on morgages  in an effort to make ownership more attractive to the french.

House prices are expected to rise more modestly this year at around 6%.