Save or splurge?

So as January has crept on it has become clearer to me that the savings for my deposit are earning less and less while I don't buy a flat.

It seems the government would like the situation to be that we may as well spend...

I am equally increasingly concerned, like everyone else, about the economy. As time goes on I'm worrying more about finding myself tied into paying for a home that is worth far less than I bought it for and having less savings to fall back on if I needed them.

So I suppose I am asking myself if I trust the idea of there being nowhere as safe for my money as houses (or flats in my case).

This trepidation has caused a massive episode of procrastination on my part which I finally broke this morning e-mailing three agents asking for details on new properties.

I feel like I have to press on with looking but I can't deny a certain fear, which is different to the fear I always had of so much debt.