There is also some evidence of overseas brokers using the general air of pessimism to over-promise and exaggerate the financing options open to borrowers. So to avoid the problems of a lost sale, Offshoreonline.org is urging buyers to speak to UK regulated brokers, so they do not suddenly find themselves disappointed at the 11th hour.

Tim Harvey continued, "We have noticed an increase in enquiries from expatriates who have been promised apparently attractive loans from large lenders who have never been in this market. For the buyer, they have to go through the whole application process, only to have the loan request rejected as soon as it is submitted. We use a panel of lenders, all of whom have a long and proven track record in this market, so customers know where they stand from the outset."

But it is not all bad news. With this dramatic fall off in demand, sellers have had to suddenly be more realistic with asking prices, as the balance of power has swung definitively back to the buyer. Equally, many surveyors are now valuing houses at anything from 10% to 15% below the advertised price, according to one estate agency chain, Savills. For the expatriate buyer then, these could be good times to re-enter the market, as prices are falling and buyers are far more open to good quality offers.

The post credit crunch message for the expatriate house buyer is therefore clear. The balance of power has swung back in the favour of the buyer, but in order to maximise this advantage, buyers have to be realistic and be prepared to commit to a 20% deposit to guarantee their mortgage.