Fears of a collapse in the British property market are unwarranted, according to Dublin-based KBCAM asset management.

Comparisons with the disastrous slump of the late 1980s were ill-founded, said Mr Eoin Fahy, KBCAM chief economist.

The UK economy is holding firm at 2 per cent growth and there is little apparent threat to job security, he said.

In addition, the rate of increase in house prices has moderated over recent months. Mortgage payments in Britain account for 16 per cent of household budget for first-time buyers, half the rate of the late-1980s boom.

"If there were unseen factors at work, the level of re-possessions would be rising but the evidence is to the contrary. The repossession level is very low indeed and the trend remains firmly downwards," he said.