Elaine Dobson, partner at Bircham Dyson Bell LLP believes that even with the economic doom and gloom in the UK property market, central London and in particular prime central London is a property bubble that can't be burst.
"The Central London property bubble seems to be intact with much of the investment coming from abroad, but there also seems to be a lot of cash that's still around to spend," explains Elaine Dobson.
"There are still pockets around the UK that show remarkable resilience during troubled economic times; central London, the prime commuter towns and the 'Cheshire Triangle' of Wilmslow, Alderley Edge and Prestbury are such locations, whilst the rest of the UK struggles on.
"The supply of good quality property is low but rental yields are increasing and the general industry opinion is that with prices in central London holding steady it is a good time to invest in buy-to-let property. Further with the price to earnings ratio increasing together with the lack of finance renting is a good option and most first time buyers will be well into their thirties before they can afford to get on the property ladder in the current market.
"However, it's not the case for all of us; the outer edges of London, north of the M25 and in other areas around the UK are stagnating badly.
"It just seems to be London and other small pockets in Cheshire, Cornwall and Oxfordshire that buck the trend completely - and seem immune from the full effects of the economic downturn."
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