Despite the fact that prices have held firm in these traditionally upmarket areas, buyers from overseas are prepared to pay a premium to secure the property they want, as a result of considerable savings being made on the currency exchange.

James Hyman, Partner for Residential Sales, said: “Despite the downturn, London is still viewed by foreign buyers as one of the most desirable places in the world to own property, particularly those from Europe and the Middle East who are taking a long term investment view. They want to buy in traditional prime locations which have limited stock and little new development, resulting in a strong level of demand.”

Prices in such areas have fallen little over the last two years, due to the fact that the majority of these property owners have owned their properties for longer periods of time and many are unaffected by the employment market or mortgage availability and have not needed to sell.

These homeowners have been in a position to hold out until the market picks up, and with foreign interest now reaching new heights, prices are apparently close to 2007 levels.