AndyH, Pleased to help any way I can but work commitments mean I cannot guarantee to be on hand for a quick response. In terms of your own investment try to make sure it is a balanced portfolio combining some 'steady-eddie' markets (France is a good bet - President Sarkosy holds Thatcherite views to stimulate economic growth on the back of increased home ownership, supported by a highly legislated property system, equally the French have a history of rental so you may be able to rent fairly easily within the domestic market and if Sarkosy has any influence see Capital growth from what is quite an affordable base at the moment) with higher risk opportunities - take a look at places like Montenegro, Lithuania or even Italy (but I suggest avoiding Calabria where there seems to be one or two issues at present). Coming back to the UK and picking up on your own thoughts about repossession rates even these offer great opportunities for the savvy investor. Building Societies put 'repos' back on the market at keen prices for a quick recoup of their funds. Make friends with local estate agents and be amongst the first to hear of repossessions in your Town (Andrews, Besley Hill and Ocean are good independent Bristol-based agents).
When exploring a higher risk opportunity get the agent/developer to disclose all due-diligence/title etc and always use a good lawyer. Remember sometimes the best investment opportunities are those that come to the market pre-release and off-plan where all the documentation may not be in place. Again it pays to get on board with a good agent who, if they are worth their salt, will know the developer and be able to provide you with the confidence you need to take a punt. Happy hunting!!