This is an update of the UK travel advise for Cyprus on the property issue.
Foreign & Commonwealth Office Travel Advice for Cyprus
"Property issues are closely linked to the political situation (see Cyprus Country Profile). There are a number of potential practical, financial and legal implications, particularly for those considering buying property in the north – these relate to the non-recognition of the “Turkish Republic of Northern Cyprus”, the possibility of a future political settlement in Cyprus, and claims to ownership from people displaced in 1974. There is also a risk that purchasers would face legal proceedings in the courts of the Republic of Cyprus, as well as attempts to enforce judgements from the courts of the Republic of Cyprus elsewhere in the EU, including the UK. Separately, there are specific rules for foreigners purchasing property in the north and you should ensure you are fully aware of these."