As property prices fall across Europe, the chance of owning a holiday home abroad may never be better. And with sterling struggling against foreign currencies – touching a six-month low against the euro on Thursday – it may be wise to get moving sooner rather than later. But where are the bargains?

France property has traditionally been a hot favourite with second home buyers and buy-to-let investors, thanks to the country’s strong rental potential. Today, it remains a popular property investment destination, with some developers introducing the idea of a leaseback scheme to appeal to investors looking for a long term opportunity and reliable rental returns.

The study by French mortgage specialist Crédit Foncier examined the housing market in the major cities and towns of France. The authors conclude that, whilst property prices in some towns and cities might drop by as much as 20% in 2009, in other cases prices could remain stable over the year.