We love the whitewashed villages, beautiful beaches, even the coffee and cakes - and the property prices aren't bad either. Cheryl Markosky surveys the market


The British love all things Portuguese, from Jose Mourinho (the self-styled "Special One") to pasteis de nata (creamy custard tart) washed down with a cup of bica (espresso).

So popular with British holidaymakers and retirees: Albufeira on the Algarve

Our love affair stretches back to 1386 when the Anglo-Portuguese Treaty of Windsor was signed, making Portugal Britain's oldest ally. But now, instead of maritime treaties, we are more interested in maritime resorts, where second-homers can enjoy faultless beaches and year-round sunshine.

The housing boom that swept through most of Europe from 1995 to 2006 missed Portugal - a blessing and a curse for the country. From 2001 to 2006, while average property prices soared by 100 per cent in Spain, Portuguese prices rose a paltry 17 per cent.