British house prices might be in the doldrums, but isolated hospots around the world are bucking the trend. Bulgaria has again topped Knight Frank’s quarterly global house price index, confounding market fears of oversupply. It has reigned supreme at the top of the table since the second quarter of last year and notched up annualised price growth of 31.5 percent in the first quarter of 2008 — far above a worldwide average of 6.1 percent.

Making up the rest of the top ten are: Singapore (29.9 percent), Hong Kong (28.8 percent), Jersey (28 percent), Russia (21.7 percent), Iceland (19.1 percent), Australia (13.8 percent), China (11.7 percent) and Sweden (9.1 percent).

In contrast, property in the Baltic region is being blighted by difficult economic conditions, evident in high rates of national debt. Latvia and Estonia suffered the worst house price drops during the first three months of the year: prices in Riga fell 20 percent on an annual basis, while those in Tallinn declined 10.7 percent.

The US is also continuing to experience difficulties, but overall managed to stay out of negative territory during the quarter, when property prices were flat. This side of the Atlantic, prices rose just 1.1 percent in Britain — significantly lower than the 11.2 percent raked up in the first quarter of last year.

Those looking to invest in property now have to scour the globe for potential purchases: “The geography of the best performing markets is not so clearly delineated as in previous years, when we might have been able to say that growth was strongest in the Far East, or Central and Eastern Europe,” says Liam Bailey, head of residential property at Knight Frank. “Today, the top performing markets are dispersed around the world.”

But investors should also not overlook one crucial factor: exchange rates. The strength of the Euro and weakness of the American dollar against the pound have seen buyers turn to the States and away from the typical holiday home destinations of France and Spain, according to foreign exchange firm HiFX. Enquires about property purchases in France and Spain have fallen 11 percent and 12.5 percent respectively since March, while those for the US have doubled since April.

Interest is also increasing in emerging markets such as Panama, Egypt and Brazil, it says. With sterling trading at its lowest levels in six years against the Brazilian real there could be some bargains to be had, but be warned: those looking for a holiday home could find themselves exposed to the wild currency fluctuations experienced in these developing destinations.

They’re still up there in the list of conversation topics at dinner parties, but house prices nowadays are more likely to have the guests huddling together for warmth than bragging about the value of their properties.

As the lending windows slam shut and the market contracts, prices according to the biggest lender, Halifax, are falling at their steepest rate since the recession of the early 1990s.

Do you think this is a welcome pricking of a property bubble that has gone on far too long and that — with features like no-deposit loans of five times income and above — could have been seen coming years ago?

Or is it likely to be merely a correction, a wake-up call to banks that have strayed from prudent lending principles, with the housing market still basically underpinned by the ever-growing demand for housing?

Tell us your views — and if you want to read more, visit our special report on the housing market.