The cost of homes in tax havens such as Gibraltar, Jersey and Monaco have bucked the trend of slumping European property prices as wealthy people seek to avoid rising tax rates in Britain.

Offshore tax firm The Sovereign Group has surveyed the prominent destinations for European 'expat money' and found that in almost every case property prices remain robust.

Howard Bilton, Sovereign chairman, said: 'We believe, and all our local sources are telling us, that much of this... is because of interest from a new breed of British tax refugee as the UK government's tax-and-spend folly begins to bite.'

Sunday Times, Financial Times