A look at the medium term

Perhaps the last few years might tell a different story. A plausible consideration given the unprecedented global events since the start of the new millennium - the burst of the dot com bubble, the threat of the US recession, 9/11, the stock market crash and the onset of the recent credit crunch.

Whilst these clearly have been "anni horribilis" for all investment markets, London Central residential has shown markedly less volatility.

This is largely due to the relative illiquidity of this asset class and the genuine utility of "bricks and mortar", which inhibits the knee-jerk reaction that other markets can exhibit.

The credit crunch has undoubtedly had an impact on London Central, but the enduring belief in its longevity and added value is likely to see it make a comeback quicker than many other markets.