Franc exchanges

Having invaded the French countryside in pursuit of bargain second homes, enterprising Brits are now searching out ways to make a living.

Estate agents report a sharp rise in the number of people buying property that generates an income from tourists. It could be an imposing ch?teau, a farmhouse with a collection of barns, a hotel or a small guesthouse.

"The main reason people move to France is because they believe that the quality of life is better, but many also find they can make a comfortable living," says Maurice Lazarus of Domus Abroad, a London-based estate agent.

The trend is confirmed by Christie and Co, a leading UK commercial estate agent that recently opened an office in Paris. Manager Mich?le Le Loc'h says: "A lot more British people are looking for small businesses. One reason, of course, is that it is much cheaper to buy in France. There are far more opportunities for independent hoteliers, who could never afford a business on, say, the south coast of England."

Four years ago, Peter and Magdalen Rimmer, who already owned a small house in Brittany, decided to buy a pre-retirement business in France. They looked in several regions and eventually bought a watermill with a farmhouse and other buildings on a six-acre plot in the Brenne National Park, near Poitiers.

The Rimmers renovated the property and turned it into a holiday complex with accommodation for 30 people. A swimming pool is concealed within a disused barn. After purchasing the property, the couple formed a UK limited company and invited friends to invest in the project. The partners in the UK organise lettings and are allocated free holiday time at the property. Audited accounts show the annual income is £35,000 and rising. "It's an idyllic place and it has proved profitable, too," says Peter. "Bookings are up 20 per cent in 2001."

The Rimmers are now selling their business and buying a larger property to develop. It is for sale for £400,000, through Domus Abroad. The same agent is selling several other businesses, most owned by Britons who have moved to France.

Sandy and Annie Steele run a guesthouse near Biarritz. It is a former hunting lodge with four bedrooms and generates an income of £20,000 a year. It is on the market for £190,500.

In the Loire Valley, a 19th century farmhouse with separate g?te accommodation netting £6,000 a year is on offer for £248,500. This is about the entry price for a 10-bedroom hotel in a popular tourist area, according to Le Loc'h. Most in demand are character properties that also make attractive places to live. Brittany and the Côte d'Azur are the favoured destinations.

Few Brits are brave enough to open a restaurant in France, but plenty want to run a bar. "What always amazes me is the number of Brits who come out not speaking a word of French and who don't have a clue about the culture. But they still manage to set up a business and make money," says Le Loc'h.