City bonuses hit a record £12.6bn - fuelling top end of market and buy to let market

Union leaders in the GMB are up in arms we hear at the £12.6 billion in bonuses paid out for city bankers in last few months - bonuses calculated before the "credit crunch" hit.

This is even more than was paid in in 2007 - great news for the London property market, as much of it is likely to be spent on property - whatever the "rights and wrongs" and "casino capitalism" arguments now being played out in the press among economists, union leaders and editors.

Recent news that average pay for chief executives at ten of Britain's leading companies has increased by 33 per cent is indicative of the increasingly polarised nature of the London sales market. Substantial property is still selling, often at a premium to both local and international buyers (encouraged by a weaker pound making London look good value right now).

Chard's London estate agent offices are seeing more buy to let investors than a year ago. A good chunk of this city bonus money is heading into investment property. Particularly sought after are smaller one and two bedroom flats in prime locations under £600,000.