The French government has signalled that it is planning to reform its property market in a way that will avoid it matching the kind of problems seen elsewhere in the credit crunch.

French president Nicolas Sarkozy has pledged reforms to make the French a nation of property owners but finance minister Christine Lagarde told the BBC that this would not mean a similar situation to Britain when it comes to buying and lending.

She commented: "Expect two conditions – a down payment of 20 per cent of the value of the house plus mortgage [repayments] which will not exceed 30 per cent of income."

Ms Lagarde added that there will be no US-style sub-prime lending.

Such considerations may interest those thinking of investing in the Brittany property market, the French Riviera property market or the Normandy property market.

The price people are paying for a residential property in France right now is about the correct one that the market should be charging, French property specialist firm VEF has stated this week.

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