“The summer slowdown in the property market, which usually begins when schools break up, is not depressing prime London property prices. Recovery in the City, the engine of prime property price movement, is putting pressure on the limited stock available. The symbiotic nature of the relationship between the financial sector and the London property market is more evident than ever.
“Banks, galvanised by the stabilising economy, are reactivating their presence in London, and their increasing staff numbers are generating increased interest in and competition for properties over £3mn. For the best properties, values are higher now than in 2007.
“Another interesting indicator of the property market’s dependence on the financial sector is that soon after the banks began adding staff number, the estate agencies began staffing up as well.”