For Brits hunting for a getaway abroad, Switzerland does not spring to mind as a budget destination.

Dennis Liddle, 75, and his wife, Sylvia, 62, from Blackpool, always thought a Swiss holiday home would be out of their grasp.

“We have been going on holiday to Switzerland for over 20 years as we are real mountain-lovers,” says Sylvia. “Given high property prices and government restrictions, it never crossed our minds to buy there. But last year we came across an ad with very affordable chalets for sale.” Last July, they bought a studio flat for CHF130,000 (£57,000) at Les Naturelles in Leukerbad.

Recent changes to Swiss property law have had a big effect on foreign investment. Since the bilateral treaties between the EU and Switzerland in 2002, foreign investors with a Swiss residence permit can now buy with few restrictions.

For non-resident foreigners there are still restrictions, but it is expected that in about 2010 the “Lex Koller” regulation — which limits the purchase of vacation homes by foreign buyers to a maximum of 1,400 units per year, with a quota divided between the cantons — will be lifted. Until then, the government will play a key role in where to build and to sell.

Foreign owners can occupy their holiday property for up to six months a year, with a maximum stay of three months per visit.

The depreciation of the Swiss franc against the euro has also made property more attractive.

“Buying a mountain chalet with pounds or euros can now be even cheaper than buying in Italy or France,” says Richard Ritter, chairman of P&C, a Swiss financial consultancy. “And it is not just about properties. I know some Italians and French who — after the introduction of the euro — cross the border to shop here.”

The minimum deposit is 20% of the purchase price, so cash- strapped buyers may not get into this market. But Swiss mortgages are among the most flexible and competitive in Europe. Fixed interest-rate mortgages are normally 1%-1.5% lower than in the eurozone. You can get a 10-year mortgage at a fixed rate of about 3.8% in Switzerland, depending on the site and quality of the house, whereas variable rates start from 2.3%. Once you have cleared 30%-40% of the mortgage, you only have to repay interest-rate fees.

Among the Swiss areas where bans on new construction and sales to foreigners have been lifted are the cantons of Vaud and Valais. “There is a lot of construction activity taking place,” says Philip Barker, of Overseas Homesearch. “The government is also pouring in money to develop local infrastructure further. And this is just a few miles’ drive from top-notch ski resorts such as Verbier, Zermatt, Gstaad or Crans-Montana.”

The Valleé du Rhône, the largest valley in Valais, has some of the best up-and-coming ski resorts: Leukerbad, Ovronnaz, Anzère and Champex-Lac.

Leukerbad, 4,429ft above sea level, is a busy year-round resort with natural thermal baths and sports facilities that range from skiing and bungee- jumping to snow-golf (using a red ball) and tennis.

A recently built development, Les Naturelles, in the centre of Leukerbad, has flats from about £120,000 to about £230,000.

Across the valley is Ovronnaz. “Ovronnaz stands out for its restrictions on high-rise and concrete buildings,” says Rebecca Brown, manager at Chesterton International.

Les Chalets de Maries is an authentic Swiss-style development of two south- facing chalets comprising 14 flats. Prices range from £155,000 to £220,000.

If you can’t keep away from celebrity-crammed ski slopes but still want to keep costs down, you should head to places such as Anzère, Champex-Lac or Châteaux D’Oex, in Vaud, half an hour’s drive from the famous resorts of Crans-Montana, Verbier and Gstaad, but with much more affordable prices.

Le Château des Rocailles in Anzère is a newly completed development selling one-, two- and three-bedroom flats with access to communal facilities and valley views. Prices start at £128,000 and go up to £260,000.

On the shores of the lake at Champex-Lac is Les Combins, where you will find luxury apartments with prices starting at £187,000 and rising to £255,000.

Also in the French-speaking canton of Vaud, at Les Diablerets, a 25-minute drive from Gstaad, two- to three-bed apartments in chalet-style accommodation at Hameau de la Gare cost from £150,000 to £390,000.

Les Naturelles, Le Château des Rocailles and Les Combins, through Overseas Homesearch, 0800 652 0769, www.overseashomesearch.co.uk; Les Chalets de Maries, through Chesterton International, 020 7201 2070, www.chesterton.co.uk; Hameau de la Gare, through Savills, 020 7016 3758, www.savills.co.uk

Go ski

A new influx of British buyers looking for cheaper ski destinations, away from the traditional, pricey haunts of the French Alps, are heading east to Slovenia and Bulgaria. The number of UK visitors to Bulgaria increased by 36% in 2005, lured by prices in Bulgarian ski resorts such as Bansko and Bovorets that start at about £28,000 for off-plan studios or one-bedroom apartments

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