At the mouth of the Thames in southeast England.

What's so special about it?

Founded by the Romans in AD 43, London is Europe's most populous city and is a cultural, political and economic hub, both for the UK and the world. With about 14 million people it is also one of the most cosmopolitan and cultural cities, with over 300 languages spoken.

Best kept secrets The latest worldwide cost of living survey by the Mercer consultancy firm found London the second most expensive city in the world to live in after Moscow. The 2007 Worldwide Quality of Living Survey, also by Mercer, ranked London 39th in the world, in terms of quality of life, and in terms of health and sanitation it ranked 63rd, just above some South African cities.

Who lives here?

The best-known residents are the royals, headed up by Queen Elizabeth II in Buckingham Palace, and the British prime minister in Downing Street. London is a must-have stopping point for celebrities and those with homes in the city include the Beckhams, Steven Gerrard, Rio Ferdinand, Wayne Rooney, Madonna, Chris Martin and Gwyneth Paltrow, and Jude Law.

What's the property market like?

Recent data from the Knight Frank Prime Central London Residential Index revealed that prices of the best properties in central London have risen by over 33.3% in the 12 months to the end of May 2007. Knight Frank found that supply of stock fell by over 50% in the first quarter of this year, while demand rose by 17%.

But all is not rosy. Knight Frank also observed that since March the number of new applicants registering for properties was down by 30%. While central London prices are recordbreaking, overall, London is slowing down and in some boroughs dropping, according to the Rightmove Index. "Various years replicate each other and 2007 is manifesting a strong similarity to 2004, " says Adam Stackhouse, head of sales for Chesterton. "This slowdown has led to speculation that the market has peaked but it will pick up again next year.

The top-end London property remains insulated from the rest of the market and shows little sign of slowing. The price of properties in the most expensive 20% of the market increased at a faster rate than the bottom 20% this month. On an annual basis, property prices in the top 20% grew by 17.4% while those in the bottom 20% grew by 8.4%. As of last month the bottom 20% grew faster than the top 20%. This reversal suggests that interest-rate hikes are having more of an effect on the bottom of the market than the top."

How do you go about buying property?

Newspapers such as The Times, Telegraph and Observer have property sections and Foxtons print 22 editions of their magazine, listing properties in different London areas. When dealing with agents it is best to source them in London through the UK's National Association of Estate Agents (NAEA) or here through the Association of International Property Professionals.

There are no restrictions on buying property as a foreigner in London and the process is simple in that you find a property and make an offer through an agent. However, an offer is not legally binding by the seller or buyer so gazumping is common.

Where are the best places to buy?

Data from Rightmove found that the average increase in prices across London was 23% but that the different areas fluctuated. Recent figures found that the five best areas for investors were Kensington and Chelsea, City of Westminster, Camden, Hammersmith, Fulham and Richmond-upon-Thames. In Kensington and Chelsea, for example, they found prices grew by 72.7% over the year.

The cheapest areas to buy are Newham, Havering, Greenwich, Barking, Dagenham and Bexley. June figures found the best performers were Camden and Brent on around 7% in a month and the worst were Hounslow and Southwark, which fell by 2.4% and 2.8% respectively.

Basil O' Mahony, director of sales at Limerick-based OKL Investments, says, "While areas of London such as Chelsea and Westminster are beyond the reach of many investors' budgets, there are other areas that offer solid growth potential.

These include Wandsworth, Battersea, Lambeth, Greenwich, Stratford and Elephant and Castle." Richard O'Sullivan, director of Christies Estates in Dublin says Croydon will be a prime location, especially as the Whitgift shopping centre was recently bought by an Irish investment consortium led by Anglo Irish Bank and Howard Holdings Plc and they plan to treble it in size.

What's the rental market like?

Knight Frank reports that in central London landlords have enjoyed 27 consecutive months of growth with rents rising by 3.8% in the first three months of the year and by 10% annually. This is due to increased tourism, city employment and reduced stock levels. Demand for accommodation in the lower price levels is also strong and the report found a shortage of one- and two-bed flats. Notting Hill and Chelsea have the biggest rent rises, with 15% registered in the year to March. The report also found that rents for houses continued to be better than flats due a lack of properties in these markets also.

What's the resell market like?

Knight Frank found that this is the fastest rate of growth since March 1979. Prices in central London are now rising at more than three times the UK average and a house worth 148,000 in 1976 would now be worth over 6.2m. In the 'uber-prime' markets of Belgravia and Knightsbridge, prices are rising by more than 45% and hitting 6,000 per sq ft.

Average property prices?

According to Rightmove the average prices of properties in the top five locations are 2,103,808 in Kensington and Chelsea, 1,273,984 in the City of Westminster, 987,325 in Camden, 937,335 in Hammersmith and Fulham and 787,761 in Richmond-upon-Thames. The average price across the Greater London area, however, is 572,643 What are the tax breaks with Ireland?

Income tax on earnings ranges from 10% to 40%, capital gains tax is 20% and council taxes are also applicable. All earnings must be reported to the Irish Revenue Commisioners.

FAST FACTS

Getting there: Many airlines fly direct to London.
Area: 1,577sq km
Population: 12-14 million
Currency: Sterling (�1 = 1.48)
Weather: Temperatures range from 2.4degreesC in winter to 22degreesC in summer.
Transport: London has six airports, Heathrow being one of the busiest in the world. Waterloo International is the central hub for trains and London is also home to the world's oldest underground. The city is linked to Paris and Europe via the Eurotunnel. The iconic red buses and black cabs are familiar sights but there are also trams and water taxis.
Going out: London is one of the cultural and clubbing capitals of the world, from cheap pints in discount bars such as Wetherspoons to trendy drinks in Mahiki and Pangaea. The West End is the theatrical mecca, the South Bank the cultural zone and Soho and Leicester Square hotspots for latenight revellers.
Eating out: Again food is very diverse from Brick Lane for the curry mile, Chinatown in Soho, Vietnamese in Shoreditch and Brixton for African and Middle Eastern cuisine. Alternatively, The Ivy offers highclass eating and the famous English breakfast and tea is a must!
Shopping: Harrods, Harvey Nics, Selfridges and Bond Street are the playground for the rich and famous on a credit-card binge. Fortnum & Mason is also known as the Queen's Grocers, selling highquality expensive products.

USEFUL CONTACTS
>> Irish embassy in London: 0044-20-7235 2171; www. ireland. embassyhomepage. com
>> British embassy in Dublin: 01-205 3700; www. britishembassy. ie
>> Foxtons magazines: www. foxtons. co. uk
>> National Association of Estate Agents (NAEA): www. naea. co. uk
>> London Property: www. londonpropertynews. org
>> Global Property: www. globalpropertyguide. com
>> Association of International Property Professionals: www. aipp. org. uk
>> Federation of Overseas Property Developers, Agents and Consultants: www. fopdac. com
>> MyOverseasProperty: www. myoverseasproperty. ie
>> OverseasList: www. overseaslist. com
>> London Tourist Board: www. visitlondon. com