Recent reports have suggested that the sales of property in some regions of Spain have fallen by up to 90 per cent.

The number of purchases of new homes has been hit particularly hard by the downturn, reports Property Week.

With residential property declining in price due to heavy exposure, many developers are being forced to refinance.

However, this trend may be beneficial to buyers thinking of purchasing a house in the country as they may be able to negotiate lower prices for second-homes.

Recently, a Scottish couple took advantage of this, purchasing a £140,000 property on the Costa Blanca for just £103,000, reports the Sunday Mail.

John and Janet Wilson saved more than 25 per cent on their house in a new development, which has a dining area, kitchen, two bedrooms and a balcony.

This has led them to recommend residences in Spain for those looking for a holiday home overseas.