House on the Hill - what's happening to prices in Highgate?

I had a terrifying nightmare last week. I dreamed that I went into our local estate agent and asked what the flat that we purchased in January was now worth. The agent in my dream replied that we would be lucky to get 60% of what we paid for it. The odd thing is that, in the waking world, we're not even planning to sell up or move house - but obviously recent headlines about house prices have penetrated my homeowning subconscious and caused some kind of deep-seated anxiety.

The UK's longest running monthly house price series, the Halifax House Price Index, recently reported two monthly rises in average house prices (0.7% in July and another 0.2% in August), bringing house prices across the UK back to a similar level to those found at the end of last year in a "broadly stable" market.

But London has always has its own rules where house prices are concerned, and Highgate is no exception. With some of the UK's most expensive streets and a desirable Zone 3 location, will  changes elsewhere in the housing market ever affect N6?

A quick play with the Land Registry website reveals what appears to be a healthy current market, with 38 properties valued between £250k and £1m selling in the area in the last month. Property website findaproperty.com reveals prices of flats and semi-detached houses have remained relatively stable (the average price for a flat or maisonette in N6 is currently around £400k), but that prices for detached houses have tumbled from £2.2m to around £1.4m since 2008.

Highgate has always sold well to celebrities - particularly actors - who favour relative privacy and a pretty village atmosphere to the more obviously showy celeb environs of Notting Hill and Chelsea. Musician Sting,  actors Jonathan Pryce, Patsy Kensit and Julian Glover, Radio 1 DJ Chris Moyles and the recently incarcerated George Michael are just some of the moneyed elite who are proud to call Highgate home, with Cheryl Cole and Jude Law both said to be eyeing up properties in the area.

What are your feelings about the current housing market? Do you think Highgate will weather any storms with its desirable location and ready supply of wealthy celebrity purchasers? Or is it an area just as vulnerable as any to recession, over-supply and lessening demand? Let us know below!