FRANCE - Fixed-rate mortgages give buyers confidence

French banks also still mostly offer fixed rates, which are 'safer' than the variable rates common in the UK and US.

"You can then get the situation we saw in the US with the subprime crisis where rates rose and borrowers could not repay loans. Buying at a fixed rate helps safeguard your money.

"If I borrow now for 20 years my monthly payments will stay the same whereas inflation could mean if I buy in five years, I won't be able to borrow as much – and prices may have risen."

Some bankers predict rates could rise to 6% (including insurance) by the end of the year. Mr Allouche said this was possible but is probably an overestimate.

"Interest will continue to follow the inflation rate, so if it rises, for sure the rates will rise, but there are signs that inflation is easing."