London property prices boosted by bankers' bonuses | Business | The Guardian

London property prices boosted by bankers' bonuses | Business | The Guardian

Bankers' bonuses and mortgage lending rules that favour the super-rich have pushed up house prices in London, resulting in a 21% jump in the number of people looking to sell their homes compared with a year ago, and a 4% rise in asking prices since last month, according to a leading property website.

While property prices in the rest of the country are falling, prime areas of the capital are buoyant with more homes appearing in estate agents' windows with higher price tags attached.

February is traditionally bonus time in the City and this year, banks, fund management firms and hedge funds are paying bumper top-ups to their generous salaries. Accountancy firms and City lawyers are also getting pay rises as the stock market recovers and corporations announce strong profits.

Last year a combination of public anger and the poor state of bank finances depressed City payouts.

But several banks have made it clear the time for apologising is over, and bonuses are justified to reward key staff.

The monthly report from property website Rightmove paints a stark contrast between London's "elite market" and large swathes of Britain which remain frozen by a combination of falling prices and restricted mortgage finance.