Over the past year the UK has seen its property prices plummet month on month, with prices now having fallen by far more than many had originally predicted and with further house price falls expected over the coming year by many industry experts. Many sellers have either had to accept lower offers for their properties or have been unable to sell, although the situation for buyers has also been difficult due to the difficulties that many have had in security mortgages despite the decrease in property values.

However, according to recent reports it is not just the UK that is suffering from a property price slump. As it is thought that around two thirds of the leading countries in the world could be facing problems, with the property slump expected to continue in these countries. Whilst the house price falls in some countries are far worse than in others, it has been claimed by industry experts that these price drops are occurring in many countries all around the world.

One industry official said: ‘It is now clear that no part of the world is likely to escape the credit crunch as property prices start to fall in more and more parts of the globe. Dubai, which is a new entrant to the index, appears to be bucking the trend, but the latest available figures are from the second quarter and do not yet reflect a sudden shift in the balance between supply and demand. When the third quarter figures are released growth is likely to have slowed substantially.’

Another official said: ‘Ongoing very tight credit conditions, still relatively stretched housing affordability on a number of measures, faster rising unemployment, muted income growth and widespread expectations that house prices form a powerful set of negative factors weighing down on the housing market.’

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