Many Brits are taking advantage of a favourable exchange rate and are opting to buy a home in New York, it has been revealed.

The dollar has continued to remain weak over the last few weeks and as a result of the number of US homeowners defaulting on their mortgage payments, many properties in the country are being sold at auction for a reduced price.

These conditions have made New York, traditionally one of the most expensive places to buy, become an attractive option for people from the UK looking for a home overseas to live in, rent or keep as a holiday home.

New York based agent Eric McLendon, of Corcoran, explained to the Observer that "because of the exchange rate there is no better time" for buyers to get a foot on the US housing ladder.

The city offers a range of distinctive neighbourhoods, from trendy SoHo to laidback Brooklyn, but Daniel Levy of housing specialist CityRealty, told the Daily Telegraph that there are still some undiscovered gems.

"A last big hold-out seems to be the Garment district on the west side. There are a lot of prime loft buildings, although the neighbourhood is extremely rough on the edges," he said.