Thursday, Oct 22, 2009

London...

London Evening Standard: Return of bank bonuses fuels a new surge in house prices

The return of huge bonuses is already pushing up the price of homes - even though City workers have yet to receive their payouts.

Posted by rumble @ 05:47 PM (3126 views)
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3 Comments

1. paul said...

Of course, there's no empirical evidence to back this up. But that never stops the London Evening Standard.

It is a free paper after all.

Thursday, October 22, 2009 10:58PM Report Comment
 

2. fallingbuzzard said...

Pretty blatantly placed by Knight Frank. You'd be surprised how little it costs them to place articles these days.

Friday, October 23, 2009 02:47AM Report Comment
 

3. brickormortis said...

If someone gave you a million quid and interest rates were shite, it would be a failrly sensible option to buy five £200,000 BTL properties. You would likely be taking in about £12,000 a year from each, totalling £60,000 a year. Let's say you lay out £5000 to get tehm rented, it is still a tidy return of 5.5% and long term they are sure to increase in value. So is it that strange that bank bonuses might drive up prices?

The question of whether that is really causing a notable surge in prices, I am not sure. Probably not. But one thing is for sure, if bank rates rise, the wealthy will not be interested in property letting for two reasons.

1) The savings rate will be ample
2) House prices WILL have to fall
3) By this time, banks will have to start repossessing.

Friday, October 23, 2009 07:28AM Report Comment
 

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