Average Spanish house prices have declined 5.9pc over the last year to the end of May, according to the house price index published by Tinsa – one of Spain’s leading appraisal companies. Holiday homes are down even more.

House prices are now back to where they were 6 years ago in May 2005, 3 years before the bubble burst.

Prices fell the most on the coast (-8.1pc in 12 months), where the market is struggling to digest a glut of holiday homes.

Peak-to-present, house prices on the coast have fallen the most (-27.8pc), followed by cities (-22.7pc), suburbs (-22pc), and the islands (-19.3pc).

Prices have almost certainly fallen more than the index suggests.