An interesting thread from the returner's forum:
http://www.britishexpats.com/forum/s...85#post1919085

Is it really slowing down that much?

If it makes any difference, our house prices seem to be continuing to rise ...

No and Yes. In the south prices for detached have remained the same. Semi-detached have dropped by a small amount.

The north will see greater drops as they went up the fastest over the previous 12 months. The south-east has seen rises which are sustainable. Within each region you will also see variations as parts become popular and unpopular. The upcoming re-assession to the throne of England (Election) will not allow a massive drop to happen over the short term whatever the banks wants to do. Past the historic third term anything goes.

We hope to be out when it really starts to kick in. Taxes will rise. Standards will drop and we go through the whole cycle of stemming the rot and wastage again. Unemployment is not at an historic low - its flim flam.

Then the UK may see major problems.

First time buyers will eventually need somewhere to live and the long term view of property is good. May take years and years but bricks will always be of some value.