British investors buying Irish homes as sterling strengthens over euro

Our nearest neighbours are buying up property all over the country, from seaside homes in the west to high-yield rental investment properties in the capital.

Estate agents Sherry FitzGerald last week began advertising Irish properties in both euro and sterling prices.

It followed a buoyant Irish property show in London last week by Sherry FitzGerald while the 55-strong network of estate agents under the Real Estate Alliance banner are planning another major UK exhibition and sale in March.

The strength of sterling against the euro means property here has become increasingly attractive and led to a surge of British interest.

At the same time, sky-high property prices in London means that UK investors are eyeing up the Irish rental market as a place to make their money work.

There is also strong interest from ex-pats looking to buy now, to move later. The strong pound means that a €500,000 Irish property bought this time last year in sterling is now £26,000 cheaper to buy for a British customer.

Mary Dillon, head of Sherry FitzGerald Countrywide said: "We have been running property shows in London on and off since 2002 as so many house hunters have direct links with Ireland. Those who attended last weekend talked of affordability in the Irish market."

She added: "Irish property has become increasingly attractive to UK buyers, buoyed by the strength of sterling in recent months."

A combination of favourable exchange rates and low property values has led to a significant increase in the number of enquiries from British property buyers.

"This year alone our website had 85,000 visits from 1,101 locations across the UK, accounting for 8pc of the total site traffic," she said.

Last month Real Estate Alliance Chief Philip Farrell said there had been increased interest since the new year from the UK - especially from those seeking holiday homes or retirement boltholes along the western, southern and south eastern coasts.

Yesterday the Financial Times ran a double-page news feature on the sale of Irish stud farms to international investors which is reviving the high-end market.

Agent Ronayne O'Mahony of Knight Frank revealed that the Chinese are new buyers in the Irish market and are now bidding for stud farms.

"Before now they would have been more likely to acquire studs closer to home," he said.