Now maybe the time to pack your bags and move to sunny Spain - banks are estimated to have 200,000 repossessed homes in their clutches and, as a result, prices are going down down down.
A five-bedroom house in Casas de Medina, Valencia, is on the market for €245,000 – a reduction of €100,000; while a three-bedroom home complete with seafront view in Motril southern Spain has been reduced from €210,000 to €198,000.
Thousands of homes are for sale, with many sellers desperate though according to property experts Rightmove, outside tourist areas prices remain strong, and interest rates are still low —around 2.35%.
Claire Nessling of foreign mortgage experts Conti, says: 'Spain's core appeal hasn't changed, so Brits will remain attracted to the formula of sun, sea and sangria, and I do think confidence will return.
'But it pays to be selective and we'd advise people to look carefully before making decisions.
'There are plenty of bargains available, but the market is sporadic, so any investment should be seen as medium to long term.'