For years Britain has enjoyed a property boom and sales of buy-to-let property and holiday homes have soared. Now, with the US sub-prime credit crunch spreading to the UK in late 2007, the British property market as a whole is beginning to suffer. In early 2008, the average price for property in the UK dropped 3.6% from the previous quarter to £222,256. Nonetheless, this was still a respectable 5.8% increase from the previous year, but way off the annual growth rates of 25% plus seen during those heady days back in 2002.

Surprising perhaps, but by all accounts the buy-to-let property market, which makes up about 10% of UK mortgages, is still thriving with a 23% yearly increase in buy-to-let loans, although in the future sub-prime borrows are clearly going to find it harder to get mortgages as banks become more selective.

The proportion of buy-to-let properties used as second-homes or holiday homes varies across the country, but in holiday hotspots like the West Country and parts of East Anglia, estimates suggest that between 9.5 and 9.7% of all homes are actually used as second-homes or holiday homes and that the total number of holiday homes in the UK could be as high as 365,000.

What's more, sales of holiday homes have risen dramatically over the last 10 years and prices of second-homes have significantly outperformed property prices in the broader property market, a trend set to continue, even in a downturn. Prices for holiday homes in North Cornwell, one of the best performing holiday hotspots, have increased by 351% in the last 10 years compared to 253% for the UK property market as a whole.

So, as the credit crunch bites and the broader property market suffers, sales of holiday homes are expected to be cushioned from the worst effects of any possible downturn. Luxury holiday homes, like a five bedroom villa on Sandbanks or a period manor house in the Cotswolds will always be in demand and prices will invariably continue their unrelenting climb upwards, but holiday property under £500,000 may see some pricing pressure.

At the lower end of the holiday property market there is anecdotal evidence from around the UK suggesting prices rises are slowing and sales of two or three bedroom holiday cottages are taking longer to complete. So, perhaps the time is right to invest in that second-home; but as ever, finding a sound investment will mean buying the right property in the right location at the right price.

The most popular region for holiday homes is clearly the southwest of England, with North Cornwall being a clear favourite and some of the highest prices being found around the Rock and Padstow area. Excellent beaches, a milder climate, little coves nestling amongst the rugged cliffs, surfing, sailing and beautiful landscapes all combine to bring holiday home buyers to this beautiful part of England in their droves.

Not far behind the West Country in the ownership of second-homes are parts of southeast England. The beautiful Norfolk Broads is a great attraction, as are places like Southwold and Aldeburgh on the Suffolk coast, where it’s possible to buy an old fisherman’s cottages or period 3 bedroom houses for around £450,000.

Other holiday home property hotspots in England include the Isle of Wight, a favourite of Queen Victoria; Pool Harbour and Sandbanks, a popular playground of the rich and famous; the stunningly beautiful Lake District in Cumbria, particularly around Lake Windermere; the Yorkshire Dales with its breathtaking landscapes; and the wonderful undulating countryside of the Cotswolds, with its majestic manor houses, quaint villages and thriving market towns.

Wales, once playing second fiddle to Cornwall in the holiday home stakes, is now becoming increasingly popular with second home buyers. With its magnificent coastline and windswept hills and mountains, places like the Gower peninsula, northern Pembrokeshire, Ceredigion are all doing well.

For homebuyers looking to escape the madding crowds and find their very own holiday haven, then take a look at Scotland or Northern Ireland. Both countries are far more accessible now that the low-cost budget airlines fly there and there’s plenty of unspoilt wilderness to explore along with some remarkably beautiful scenery to enjoy.

In Scotland, where Queen Elizabeth has her own holiday retreat, holiday homes run from multi-million pound castles in the Scottish Highlands to picturesque little period cottage on the delightful Isle of Arran.

Northern Ireland is also becoming increasingly popular with holiday home buyers, especially along the Ards Peninsula, where the Irish Sea on the east and Lough Strangford to the west combine to create a magnificent moat for this wonderful heaven of tranquillity.