The London property market is set to enjoy a long-term period of stability, according to one of the UK''s leading estate agents.

Hamptons International said that the credit crunch which followed on from the US sub-prime debacle had had only a short-term impact on the capital''s property market.

Regional sales director Marc Goldberg added that subsequent jitters arising from the run on Northern Rock also led to a very limited impact on the market, with property prices now having largely recovered from the ten per cent dip observed at the height of that crisis.

Although buyer confidence appeared to have been dented by both crises, he said that the market had "bounced back to life" both times, apparently buoyed by its unrivalled status as an global financial hub and one of the most sought after real estate centres in the world.

"We now appear to be going through a strong and fast period of recovery having witnessed a very robust October market in which buyer numbers and the volume of sales agreed have returned to normal autumn levels," Mr Goldberg added.

According to the latest figures from the Land Registry, London property prices rose another 1.3 per cent last month, clocking up at annual rate of 16.5 per cent - almost double the national average.