City bonuses create new London hotspots

Cash-ready buyers are ready to put a chunk of the estimated £8.8 billion City bonuses into the London housing market, according to haart estate agents. As a result, there is expected to be vastly increased demand for large family homes priced over £800,000 and high-spec one- to two-bedroom flats.

haart has recorded a 25 per cent increase in registered buyers in the prime areas of London, where City workers are primed to spend their windfall. Prestigious family properties in the capital are in high demand and as a result prices for family homes are set to continue to soar in locations such as Bedford Park in Chiswick, the Peterborough Estate in Fulham and‘Between the Commons’ in Clapham. Canary Wharf will also see increased market action, as its location combined with its ready supply of high-end, low-maintenance apartments in exclusive developments such as Pan Peninsula, are just what the banker ordered.

The Olympic Village area is also set to soar, with the Icona development, due for completion in 2008, emerging as the area’s most sought-after investment opportunity.

Russell Jervis, managing director of haart estate agents, says, ‘There has already been a higher than usual number of buyers registered for this time of year as a result of the expected bonus bonanza. City bonuses have commonly been invested in bricks and mortar and we expect it to be no different this year. However, the flood of extra money will have a direct impact on the value of properties, particularly the properties ideal for buy-to-let investment, which command high rental yields, and grand family homes.’