Many investors in prime central London housing in 2010 are foreign-based buyers looking to double their money by taking advantage of the weak pound and using currency deals available from private banks.

Curzon Investment Property, a niche London-based investment agent says all its clients this year have come out of Asia and South Africa and they are all utilising US pegged currencies or US dollars.

With an average annual growth of 9% per annum across prime London residential since 1969, the company believes that pessimistic investors can still make great returns.

James Moss, director of Curzon Investment Property, said: “Quite a few banks, particularly private banks which many of our international clients use, can offer mortgages across a range of up to 14 different currencies. With sophisticated SWAPs options built in, clients can ‘lock in’ on currency profits when the FX shifts in their favour.

“We conservatively estimate that clients gearing up to 70% mortgages can see 100% equity profitability in around eight years. This is based at a very conservative growth model of 5% per annum compounded. The historic trend is nearer to 9% per annum since 1969 within prime central London across Knightsbridge, Belgravia, Kensington, Chelsea, Notting Hill and Holland Park.

“Our clients are using foreign currency mortgages, mainly in dollars and they are aggressively financially modelling a 100% return on their equity in less than four years. Their strategy is partly based on a judgment call that the pound will rebound against the dollar as the UK economy recovers over the next three to four years.

This strategy is underpinned by us sourcing and buying us obtaining for our clients prime central London investment property which grows conservatively and also pays its own way in the meantime. If these investors’ assumptions about Sterling are proved correct, then they will have a very realistic chance of achieving their four year payback target.”