News

The plunging value of the pound abroad is making Britons think twice about heading across the English Channel for a break, and their love affair with buying French holiday homes is well and truly over, experts say.

The British currency has plunged by 20 per cent against the euro in recent months

The British invasion of some parts of France is well documented and for years buyers flush from booming property prices here have bought property in places like the Dordogne, turning some areas into virtual British enclaves.

But that has all changed. 'People are really nervous,' said Steve Gillham, estate agent for Alliance French Property Group, adding that his company had had virtually no sales since last October.

Tourism chiefs meanwhile are crossing their fingers that the 15 million Britons who stayed in France in 2008 will not cancel their holidays across the Channel this year.

Forecasts by the Foreign Office and the travel industry federation ABTA suggest that France and Spain will remain the biggest destinations for British travellers this year despite the unfavourable exchange rate.

But destinations outside the 16-nation eurozone, such as Turkey and Egypt, will likely see a surge in British holidaymakers this year as Britons seek cheap sun outside the pricey euro area.

While the weakened pound is hitting Britons' plans to travel abroad, the British tourist industry is hoping the country's relative cheapness will attract more foreign visitors - although figures so far do not reflect this.