We asked property experts Phil Spencer and Kirstie Allsopp to tell us how they'd go about bagging a bargain house - here's what they told us.
Remember, it's not just house prices that have dropped, it's the number of transactions. With fewer properties coming onto the market, it's more important than ever to work out your priorities, and the compromises you're happy to make. Stick to these and you'll look in the right places, and hopefully not end up buying something you didn't really want.
Consider all Property Types
Bungalows have tended to hold their value more than other property types. And there are deals to be had on new builds. Developers are feeling the slump more than most as would-be buyers go into the rental market instead of buying.
Watch the Property Listings
It's a harsh truth of this market- but it's become a buyer's market and if you're a buyer you're in a position to get a good deal. Have a look out for properties that have either been on the market for a long time, has sellers that are keen to move because they are extending their family or have their eye on another home. If you find a few of these properties put offers on all (letting all know this is what you are doing) and await the best offer.
Don't be Afraid of Doing Work
Buying a fixer-upper is cheaper - and now it's even more important to be able to add value to a house. Extending a kitchen or adding a downstairs bathroom can make a massive difference. But always remember to research the ceiling prices for the area.
Buy a Property at Auction
It's not nice to think about, but for every cloud there's a silver lining. Repossessions are on the rise, so more properties are being sold at auction. There are bargains to be had - but do remember you have to have all your finances in place to buy.