Estate agent Savills has revealed that despite difficult economic conditions the UK residential property market is still buoyant.

The firm claims that last year''s credit crunch has not had the huge detrimental impact that many analysts predicted with the group stating that their residential business had "remained resilient".

This is despite reports of difficulties in the commercial property market with the group revealing that dealing in that sector had been "challenging".

Property firm Hamptons International has also stated that the UK property market is expected to defy the credit crunch, with the group expecting demand and asking prices to remain high.

"While there is much negative speculation around and no doubt the credit crunch did create an initial shock to the market, we have found buyer confidence is gradually returning," the estate agent''s latest report stated.

Recent figures from mortgage lender Halifax show that house prices grew 1.3 per cent in December.