As in the UK, the economic crisis is hitting Spain hard. Banks are not lending and obtaining a mortgage in Spain has become much harder than we have seen over the last few years. Gone are the days when banks were falling over themselves to give expats mortgages, and people were rushing to Spain to buy more than one investment property.

The ministry of housing has issued a report showing that in several areas, the number of 'new' properties left unsold could rise as high as 850,000 or more. Along the length and breadth of the Costa del Sol the slowdown in building can be seen clearly, as more and more sites seem to have come to a complete standstill.

Completed urbanisations with empty apartments and houses - many of which have 'for-sale' signs hanging from the windows where investors bought properties off-plan with a view to selling for a profit, are lying empty with no prospect of selling coming soon.

Many people have looked to renting their properties to cover their costs but this is not proving to be the 'quick-fix' solution that they were looking for. As more and more investors are placing their properties on the rental market there is now a saturation of properties and many are also still remaining unoccupied.

As the crisis deepens, Prime Minister Zapatero has met with the major Spanish banks urging them to increase lending to small businesses and clients seeking mortgages. No doubt in hope of trying to boost the economic crisis that has hit hard the property industry and small businesses who are suffering as credit facilities are withdrawn.

The effects of the slow down in the property industry have had a cataclysmic effect on many small businesses that rely on the property boom for survival. Many businesses such as furniture stores, small estate agents, home decoration and shops selling fixtures and fittings are closing down all over the Costa del Sol as the crisis deepens.

With people returning to the UK on a daily basis, be sure to do your homework thoroughly before committing to moving over to Spain lock, stock and barrel as life can actually be tougher here in Spain than in the UK at the moment.

This article was written or verified by a professional.