Portugal property prices have become more affordable for Britons, a study has shown.

Money exchange firm Currency Index has revealed that Portugal is among several countries where the cost of buying has fallen in recent months as the property market has slowed, the Press and Journal reports.

The study of eight countries – including some not in the eurozone – showed that the cost of mortgages has fallen as central banks have slashed interest rates, while the recent improvement in the value of sterling has had a positive effect.

Spokesman for the firm Robin Haynes said: "With property prices and mortgage repayments now significantly lower than in 2008 in many of the UK’s favourite foreign holiday-home destinations, we are seeing a renewed demand for currency exchange."

Those thinking of buying Portugal property could be in very good company, it was recently reported.

Press speculation linked Hollywood star Angelina Jolie with the country, with claims she had instructed an agent to find her a beachfront property on the Algarve.

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