The UK prime property market is resilient and is doing well despite the global credit crunch.

London Central Portfolio (LCP) said that repossessions and distressed sales are uncommon in the market.

According to the firm this is because buyers tend not to be reliant on credit and often see their properties as long-term investments.

"Prime properties are largely held by long-term owners, either as second homes or as rental investments, but they are unified by a low reliance on credit," said Naomi Heaton, LCP chief executive.

"Low loan to value ratios in well structured investments and long-term mortgages that have largely been paid-off mean that repossessions are minimal and distressed sales are few and far between.

"This means that the market is not being flooded with property, which would suppress prices," she continued.

A recent report from Halifax Estate Agents showed that 78 per cent of all million-pound properties in 2007 were located in London and the south-east.