Britain's Foreign Office says it is advising Britons not to buy property in Israeli settlements in Palestinian territories or the Golan Heights. The ministry says it will post the warning on its Web site.
The ministry says home buyers should consider the possible consequences of future peace deals between Israel, the Palestinians and Syria on the property. British Prime Minister Gordon Brown said Friday there will inevitably be changes to settlements under any peace deal.
Brown held talks Tuesday with Israel's outgoing prime minister, Ehud Olmert, and raised the issue of settlements. Britain has backed Palestinian Prime Minister Salam Fayyad's call for Israel not to expand West Bank settlements.
Israel's London embassy was not immediately available to comment.
According to the Guardian, officials say the warning should not be seen as a change of policy, but and that the government simply means to stress the urgency and sensitivity of the matter.
The move came after a meeting between British Prime Minister Gordon Brown and Palestinian PM Salam Fayyad.
The Palestinian Ambassador to Britain, Manuel Hassassian said, "This is a dramatic change of policy by Great Britain They have gone a long way in being critical of Israel's policies.
"In the past they have talked about settlement being an obstacle to peace and so on. But this is a milestone. They are now being proactive and very serious."
A spokesman for the Israeli embassy in London said, "If this is true it is highly disappointing in the light of the successful visit paid by Prime Minister Olmert to the UK during which he held frank and detailed discussion of the measures Israel is willing to take to advance the peace process with the Palestinians."