Wetherell

A penthouse in St James's Square has been sold for a reported £115million breaking the record for the world's most expensive property deal set little more than a month ago. The development, comprising five flats as well as the 20,000 sq ft penthouse, was only given planning permission at the end of last week.

The average home has lost £6,000 in value over the past six months in the latest sign that the housing market is on the brink of a major decline. The number of new buyers being approved for a mortgage has fallen by nearly a half since this time last year amid fears that curbs on new home loans could drag down property prices even further.

Mr A Non-Dom had a lot on his mind as he closed the door of his Mayfair mansion and set off for the office last week. The (financial) nip in the air has made him hanker for greener pastures. "I have accumulated my wealth for quality of life, and London has given me that quality," said one. "But there is a concern now about how long that will last."

This should have been a cracking year for wealthy homeowners. While momentum has drained from the mainstream property market - diluted by the sudden shortage of credit and faltering confidence - prospects have remained sunny for the most expensive London homes, perennially popular with wealthy foreign buyers.

Set in the heart of London, Mayfair is back among the most elite addresses, says Paul Shearer. Walk down any London high street and you won't usually see Prince Charles and Prince Philip staring out at you from a shop window. But, passing the picture framer on Mount Street, there they are -two large, black-and-white portraits of the royals. This is May-fair, after all, and it is far from your average neighbourhood.