While prices have fallen sharply over the past year, the sector still faces stiff headwinds from high valuations, a weakening economy, and tightening credit for buyers.

While a large segment of the U.K. equity market is exposed to direct of knock-on effects of house price declines, this is not reflected in current prices.

The European Central Bank has been far less hawkish than advertised; as a result, Eurozone prices may rise faster than most expect.

While U.K. dividends seem likely to hold up reasonably well in coming years, low dividend yields and the ailing financial sector are likely to limit the protection afforded investors in the event of a market downturn.

It looks increasingly like U.K. property has seen its highs for this cycle.

While exposures to “toxic waste” debt are tough to pin down, European financials face a tough road ahead.