A new property fund aimed at investing in Central Londons residential market is set to be launched on the back of big City bonuses.

D&G Asset Management, which will manage the Guernsey based fund, claims that since 1979, prime central London residential property prices have consistently risen within two years of city-based companies performing well.

Describing central London as a "microclimate", unrelated to the wider UK property market, the company claims that residential property prices in prime central had increased by just 10 per cent since 2003, compared to more than 60 per cent for the nation as a whole.

Investors will have to pay a minimum of £25,000 for the fund which is due to be launched in April.

Stephen Yorke, chief executive of D&GAM, said: "Our research points to good, consistent and low volatile growth for central London residential property."