The forecast payout is 18% higher than the same time last year according to research.
The Homebuyer Show surveyed over 200 property analysts and experts exhibiting at show, who predicted bonuses would be channelled into the housing market as investors sought to maximise their funds through property investments.
Nick Clark, managing director of the Homebuyer Show, commented: “The poll of estate agents, mortgage brokers and property investment professionals reveals a significant predicted uplift in market activity from City workers as they look to invest their extra cash in bricks and mortar. Property is still the most lucrative of the asset classes, and with the London property market forecast to experience price rises of a further 8% next year, there are some excellent investment opportunities out there.”
The London market has traditionally been the main beneficiary of these huge payouts with locations in the City and London Docklands, Chelsea and Knightsbridge being the most popular choice with investors. Investment in buy-to-let property has also become a common option as city workers see the benefits of letting property, which can provide yields of around 6% per year.
John Stewart, business development director at Estates and Lets, commented: “We have already seen a 20% increase in customer enquiries over the last couple of months. Whereas the West End tends to receive investment from foreign investors, Canary Wharf and E3 and E14 addresses are the most popular locations for the investment of city bonuses. Investors are increasingly looking to put their money into buy-to-let apartments, and these range in price from £220,000 for a one-bed apartment in E3 to up to £600,000 for a two-bed apartment in E14. There has also been a lot of interest in Stratford in the lead up to the 2012 Olympics.”
