Declining City Bonuses Could Lead To Downturn In London Riverside Market

Knight Frank has said that sales of luxury central London flats may be affected by fears that City bonuses will be slashed.

The company warns that that if investment banks look likely to cut bonuses house price growth in central London would flatten for the rest of the year.

Knight Frank’s riverside division, which caters typically for bankers and other professionals looking for a pad on or near the Thames, has reported demand grinding to a halt for homes costing less than £1 million.

Speaking to the Times Sarah Haslam, head of the division, said: “It has been like a ghost town in the under£1 million market so far in August. We were very busy in the core market under £1 million for the past two years and we are very busy in the £1 million and over market, but under that it is as if there is no one out there. Typically, they are single and young people. They are quite nervous and saying they will wait to see if anything happens to their bonus.”