When the English & Wales price index is compared to the UK money supply growth (codename M4), it's obvious that the property prices have lagged behind the money. Bad news for those who don't own their property yet: English homes are certainly not overvalued at the moment.
London is a different story. It appears overvalued, but foreign buyers must be taken to account. Viewed from this point, the London property market is probably not overvalued, either.
Property prices are simply blown up by the monetary inflation over time. Let's get used to that.