A leading estate agent in south-western Scotland has moved to dispel fears that the UK property market is heading for a US-style crash.

The reassurance from Donald Ross of Ayshire comes after the International Monetary Fund (IMF) last week said that UK property is 40 per cent overvalued and is headed for a "price correction" in the coming months.

In its latest global report, the IMF noted that UK property growth in recent years far exceeds the pace of the overpriced US market, which has been falling steadily since last year.

Donald Ross managing director Steven Miller insisted, however, that there were fundamental differences in the two markets, not least of all the chronic shortage of housing and development sites that is endemic to the comparatively small British Isles.

He concluded that the UK market was not likely to experience a significant crash, though there remains the potential of more sluggish growth in the coming months and years.

Also this week, Monetary Policy Committee member Kate Barker expressed her belief that the recent global financial crisis was unlikely to prompt a significant slowdown in either the housing market or the wider economy.