London banker's bonuses are not expected to have as great an influence on the UK property market as first believed, it has been suggested. Leading property portal Sourcing Property remains unconvinced about the impact that this years' bonuses will have.
The firm explained that the biggest bonuses tended only to be reserved for the company's top performers, rather than the organisations as a whole.
In addition, Jo Eccles, director of Sourcing Property, said that the fact that bonuses are not paid in 100 per cent cash will also prevent some from investing.
"What is most likely to affect the spring market is the introduction of the five per cent stamp duty on purchases over GBP 1 million which comes into force on April 6th this year. This is likely to lead to heightened activity at the top end of the market in the run up to April 6th," she added.
Ms Eccles added that inflation concerns are also having an impact on the market, with a number of individuals keen to invest in property rather than have their cash sitting in the bank eroding in value.
- Friday 21 January 2011