I've just finished my first new build property, right on time for the tough market conditions to affect me, inital valuations of £230k-£240k have fallen to £210-215k, the build stands me in at £170k inc land so it's tempting to tenant the property for the next few years and ride out the storm, but on the flipside it'd also be nice to get some money out for my hard work!
I can only forsee things in general getting worse for the next year at least though, rising fuel prices, people striking, everyone needs more money out of "the system" and the system hasn't got it to dish out... rocky road ahead I think, not to say that property isn't a good investment still if you've got the cash to do put down large deposits and do a quick deal.