In the latest Christmas bonus bonanza, London’s city workers are forecast to receive payouts totalling £8.8 billion, 18% higher than the same time last year according to the most recent research from the Centre for Economics and Business Research.

And a survey of over 200 property analysts and experts exhibiting at the next Homebuyer Show reveals that as much as £4 billion of this estimated £8.8 billion bonus pot is predicted to be channelled into the housing market as investors seek to maximise their funds through property investments.  

Apart from the predictions, some property specialists have already seen the buyers’ preparation to spend. John Stewart, business development director at Estates and Lets, a buy-to-let property investment company said: “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.”

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 prestigious 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.” 

City bonuses will also make their way to foreign shores, as city workers look to purchase a holiday home or maximise the return on their investment. Although some of the emerging markets do carry greater risks than investing in the UK market, the rewards can be much higher, with capital growth of up to 50% recorded in some countries.

The Homebuyer Show will be hitting the ExCeL Centre in London’s Docklands from Friday 2 to Sunday 4 March 2007, and will feature over 250 exhibitors specialising in all aspects of the property market both in the UK and abroad. There will also be a comprehensive programme of expert-led seminars covering all aspects of buying, selling, financing and managing your property.  Entry to the show is free of charge, with the majority of seminars costing £5 each.