Spain’s most reliable house price index fell 8.1pc in 2011, making last year almost as bad as the crisis year of 2008, when prices fell 8.8pc.

There is a clear double-dip in the curve (see above) with price falls accelerating again after staging a feeble recovery last year.

One of the reasons house price declines have picked up speed is because of the return of the credit crunch in Spain. The double-dip in house prices is mirrored almost exactly by a double dip in new mortgage lending.

Surprisingly, coastal areas where holiday-homes and much of the glut are concentrated finished the year better than other areas, with prices down 7.2pc over 12 months, compared to 9.1pc in cities and 8pc on the islands.

Some experts argue that popular coastal areas will recover before the rest of the market thanks to diversified international demand from comign from economies doing better than Spain.