For decades the Algarve’s golden beaches and sunny climate have prompted many British people to buy second homes there but a new type of buyer could be about to arrive in Portugal – the investor.

The recent RICS-CI Portuguese survey showed that Portugal’s domestic rental market has become especially active due to the inability of local families to get on the housing ladder. The weakening demand for properties there is also helping to keep prices low, resulting in a raft of quality Portuguese properties available at cut prices.

Said CI Spokesman, Ricardo Guimaraes: “Survey respondents note that limited residential sales are due to tight credit constraints and the government’s fiscal austerity measures, which are reducing families’ incomes. Because of the difficulties buying a home at the moment, many families are instead turning to the rental market, which is experiencing a boost in activity”.

Anyone investing in a buy-to-let should keep in mind how they might repatriate rental income in euros back to the UK. Using a currency specialist, such as Smart Currency Exchange, could save you hassle and money, thanks to their regular payment schemes.