The work of identity researchers argue that current theories of second language acquisition are problematic in explaining the relationship between the language learner and the wider social world. This study examines the relationship between situated identities and constructed learning environments, and discusses the implications this relationship may have on language learners' perceptions of acquisition of English through a longitudinal case study of a group of Chinese students studying English in London. It identifies a number of recurring themes; including personal 'investment' in English, perceptions and experiences of English, imagined communities, stratification of English varieties, and learners' literacy practices. The study argues that reasons for learning English and the educational values of being in a native speaker environment should be seen in terms of the learners' identities and complex social realities that they construct, shaped by a mixture of language preferences, social values, personal goals and notions of 'home'.