[Caroline]

Isn't it amazing how quickly things can change! Here I was just a few months ago complaining about how expensive property is in the UK and then 'crash' - it happens - a recession of global dimensions!

Ok so maybe that's a bit on the negative side but house prices sure are dropping. Again, I won't claim to have done extensive research (sorry, don't have time for that) but again I am writing down my observations.

Homes in the Ringwood area have dropped between £10.000-50.000 in price. There's this lovely home in the New Forest that I have been following with interest as it has showed the biggest drop in price that I can see. The price was a mere (uhum) £800.000 and it was recently put down to £750.000. It is by no means the only home with a significant drop in price.

In contrast the rental market is going mad as the agents can barely cope with the demand. So if you have any plans about building up a property portfolio (i.e buy to let market) then now is the time. If you have some spare cash laying around that is!

My short attention span has however taken my interest to other shores. I heard that property prices in Spain are dropping fast. Although my favourite TV program assures me that property prices are rising - they are still showing property programs from 2005. It is still amazing what you can get in Spain compared to the UK, not to mention the lifestyle.

So anyway I have just finished reading "going to Spain", "buying property in Spain" and "knowing the law in Spain". All I can say is that buying property in Spain is not for the fainthearted! If you ever consider this option for heaven's sake make sure that you have a bilingual lawyer or Abogado as they call it. I particularly enjoyed "knowing the law in Spain" as it also explained a little of the historical context of the law (just helps to understand why they have such 'strange' property laws.

In terms of investment my little brain tells me that the UK is a much stronger investment. UK's property shortage and limited available land with a growing population outdoes the Spanish oversupply of property any day. But who knows what the future holds.

I wouldn't mind a home in the sun though - with a sunny patio and a glass of red wine! Sounds like a brilliant retirement plan - Ole'!

[Dedré]

Yes, they are talking about at 30% drop here in SA as well.

[Minette]

An upturn in house prices are expected from 2010, according to a report by the National Housing Federation in the UK. At least some light at the end of the tunnel - albeit only in 2010

The report researched by independent economists Oxford Economics – forecasts that house prices will fall in 2009, start to recover in 2010, and then rapidly increase from 2011.

The article is available for download here

Good news for us, as we are hoping to buy a house at the beginning of next year

Minette