Politicians may not like it, but the City is paying bonuses again — which are driving the market

(Source: Times Online)

A trickle of e-mails with the suffix “gs.com” is beginning to show up in the inboxes of the estate agents who deal with London’s more expensive homes. It seems that employees of the American bank Goldman Sachs, which announced bumper profits this summer, are feeling much more optimistic about their financial futures.

While the world’s politicians struggle to agree a way of curbing bankers’ pay, the bonuses already paid out this year — coupled with the expectation of more to come — are beginning to have an impact on the top end of the property market in the capital and beyond.

“The ‘gs’ inquiries we’ve noticed in the past few weeks will undoubtedly have bonuses attached to them,” says Emma Stead, office manager of Savills in Fulham, an area of southwest London popular with bankers. “Many are people returning to us, asking about properties they viewed but didn’t commit to earlier in the year.”

Read Peter Knight’s full article “Return of the bonus boys in the home market” in Times Online (September 6, 2009).

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