Umbria, Italy's green heart, is known as Ombra (Shadow) by the local people. And for years it lay in the shadows of its over-exposed neighbour, Tuscany.

Foreign purchasing power has raised the cost of living and property prices to such an extent that it looks as if Tuscany has had its day and many buyers have for some time been turning to its sister region, Umbria, for better value. The scenery will not disappoint.

Although the region is landlocked, there are rolling hills with castles, fortresses and watchtowers dotted throughout. The many medieval hill towns are filled with fine restaurants and cafés, and Perugia, the region's capital, is host to the annual Umbria Jazz Festival; this July's line-up includes the pianist Herbie Hancock.

The Umbrian property market has been ticking along nicely for a decade. Although prices increased considerably at first, they began to level off in the past couple of years. But planning regulations are tighter in Umbria than Tuscany, so new-builds are rare and extending is not generally allowed. Most easily developed single properties have been sold, so there is a scarcity of new renovations coming onto the market, which helps to keep Umbrian prices buoyant.

Gemma Knowles, of the UK-based estate agency GKItalian Property, says that you can still find a property for as little as €100,000 (£80,000), but at that price it will need a complete renovation. “You will probably need at least the same amount of money again for restoration,” she says. If you include trying to manage the work from the UK and the language barrier, it can be more of a hassle than it's worth.

Thankfully, there are companies happy to put in the time and work for you, leaving you with a fully restored stone farmhouse in a fabulous setting. One such is Ultissimo, a collaboration between Steve White and Paul Belcher, which

specialises in restoring properties in the area. White lives in Umbria and manages most of the renovations. “We offer properties for anyone wanting a unique restoration with the best of modern comforts,” says Belcher.

They have two restoration projects under way in Umbria. The first, Villa Rancale in northern Umbria, is only a half-hour drive from Perugia airport. It is a set of eight renovated homes in grounds of four acres, including a swimming pool and tennis court, with access via a tree-lined private road. Four of the properties remain on sale from £240,000.

The other development, the San Vittorino estate, is set in its own 120-acre valley with views of the medieval town of Gubbio and the surrounding countryside. The derelict farm buildings are being restored with the original reclaimed materials to ensure authenticity. The eight properties will have access to a heated swimming pool plus an all-weather tennis court, and golf practice areas. The area is great for such pursuits as cycling, golf, truffle-hunting and horseriding.

San Vittorino consists of seven spacious three-bed properties and the gem is a converted private chapel - now a one-bedroom house - with a 16th-century fresco above the bed. Prices for the properties start at £215,000. Both developments address environmental concerns, with use of reclaimed materials, solar heating and a large reservoir to capture rainwater.

Umbria's property prices vary according to location, but they are worth comparison with Tuscany. For instance, a two-bedroom renovated apartment in a hilltop town in Cortona, Tuscany, is on the market for €300,000; a similar property in the hilltop town of Piegaro, Umbria, is only €180,000. Umbrian prices tend to be higher for properties near to main cities and towns such as Perugia, Assisi or Spoleto.

Another prime location in the area is Lake Trasimeno, where properties with lake views carry higher prices, sometimes as much as 20per cent above the average.

Chris and Anne Charnock were lucky enough to find one such property. They looked in Tuscany at first but the high prices there convinced them to hunt farther afield. They didn't have to go too far. Just 12 miles from the Tuscany border, they found an old barn being converted into four apartments by a local builder, with views across the lake.

There were other benefits. “Where we are in Umbria has the added bonus of being only 70 miles from not only Florence but Rome too, which is ideal for day visits. Both cities were a huge influence on our decision to buy in Italy in the first place,” Chris confesses. He also felt that Tuscany was not offering the “real” Italy. “It really has turned into a bit of England in the sun,” he says. For him, Umbria offers a far more authentic Italian lifestyle.

The downside to authenticity is that many of the local people do not speak English. Chris is diligently learning the language. “I can just about get by. The locals are helpful and will let you have a go.”

Fact file

British buyers pay 10 per cent VAT on the purchase price in Italy. For “luxury” properties, defined as over 200sqm (2,152sqft), the rate goes up to 20 per cent.

Buyers also pay a buyer's commission of about 3 per cent plus notary fees.

Ultissimo: 020-3178 4975, ultissimo.com .

GK Italian Property: 020-7241 3627, gkitalianproperty.com .

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