Yesterday’s Evening Standard reported that recent resurgance of big, fat bank bonuses has cause property prices to rise in some prime London areas – including Kensington and Notting Hill, and other upmarket parts of the capital such as Holland Park and Chelsea.
The resurgence means that a number of properties in some prime streets are selling for above asking price, with some sales even going to sealed bids. One estate agency reports that prices in these areas have risen by 8% in the last six months. Interest has also risen, with many more buyers – particularly those that work in the City – being registered as new applicants.
All in all, it’s a little bit of a skewed report. It shows that top end flats and houses are popular once more, depsite that fact that, as with so much of the property market, such properties had such a tough time of it in the past year or so (with prices either slashed massively to sell, or languishing on the market for an incredibly long time). What the article really shows, however, is that bankers are back. With their bonuses. And that they’re not afraid to spend them.
Article: Return of bank bonuses fuels a new surge in house prices (22nd October 2009, Evening Standard)