I don’t know enough about the current state of the economy to comment but I pushed myself right to the limit (101% mortgage as a 1st time buyer) 6 years ago to buy in Edinburgh and it’s something I’ll never do again. I’ve enjoyed living here but we’re just about to put it on the market and will take a 15-20% hit on what I paid, without even factoring the £1000s spent on upgrades and improvements in that time.
We’re moving out of the city where an extra £40k is moving us from a 1 bed flat to a 3 bed house with massive front and back gardens. I’m sure you’ve heard it before but from now on I’ll never consider a house an investment, so long as I think it’s worth paying £x a month to live there I’m happy and if it happens to increase in value so much the better.