Those who seek to buy French property could protect their investment against further falls in the value of the pound against the euro by entering into a fixed exchange rate deal, it has been suggested.

Managing director of the currency specialist Caxton FX James Hickman told the Times that many who buy property in the eurozone do so on the basis of a deposit to begin with, followed by further payments, which could make it better for the investor to fix an exchange rate based on the initial amount in order to avoid increasing the cost through a depreciating pound.

"This means whenever payments are due the rate will not change, no matter what the market is doing. This is a very sensible thing to do, considering the volatility of the pound," He commented.

Mr Hickman noted that demand for French property in Alpine ski areas is still high, showing that interest continues to be significant despite the exchange rate.

Foreign Exchange Broker World First has predicted that the value of sterling against the euro will fall over the next month, although it will pick up again during 2009.

Visit Rightmove Overseas for the best selection of French property. Stop dreaming, start searching!