Despite the recent slowdown in the housing market, people continue to favour property as an investment. According to a recent survey conducted by Invesco Perpetual, 41% of 526 ISA holders believe that property will provide the best returns in the year ahead.

Neil Woodford, Head of Investment at Invesco Perpetual, is displeased by the findings. He said: "Whilst residential property has undoubtedly been a good investment over the past few years, it is extremely dangerous to project these returns into the future."

"Relative to equities, and in absolute terms, the valuation of residential property now looks extremely stretched. I believe that there will be a downward correction in the housing market over the next two to three years."