Thanks for all of this advice. Nothing, it would seem, is that straight forward although I am coming to the conclusion that sticking is better for the time being.
One interesting anecdote which partly explains my caution in any case re the housing market generally. In 1999 I bought a house in the North East with an ex (while working up there). It was a reposession, 3-bed detatched, 50k, and pretty nice. Long story short, we split up in 2003 and at a similar time I got a job in a different part of the country. I agreed to let her buy me out as I felt the market had more or less peaked. In order to value the house we put it up for sale. Best offer was 90k. So basically the ex paid me the difference (20k or so). Anyway, she ended up selling 2 years later for 155k (I kid you not). I was bit miffed when I heard this but at the same time philosophical - after all, hindsight is a wonderful thing and all that. What this made me think was, I was certain the market HAD to fall at that time - but it did the opposite. So what do I know eh?
Another interesting thing: I know of two sets of friends who have jumped on buy-to-let bandwaggon in the past 18 months (and tried to encourage me and my partner to do likewise but I have to say I really find buy-to-letters - especially the smug couple types - v v irritating - dont know why). Both paid way over the odds for shite second homes which they let out and which will plummet if this board is anything to go by. Both may get their fingers burnt and, although friends, I will be first to tell them that they would have been much better letting a 1st time buyer get on the ladder rather than trying to think they are entrepreneurs (yeh, right) or whatever.
All in all, I would say these are very interesting times we are living in...