Britains house prices are overvalued by almost 20%, according to a study from estate agent Cluttons and Oxford Economic Forecasting.

It states that UK house prices are overvalued by about 19%, though the figure for central London is lower, at 8%. It now appears that the residential property market is now set to experience a soft landing rather than a crash, according to the report.

Neil Chegwidden, of Cluttons, said: "We do not believe UK residential prices will suffer a crash. Most forecasters, including ourselves, adjudge that the UK housing market will experience a soft landing and will probably see some positive growth in most of the next five years."