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Who will buy expensive properties if there are no rich bankers?
The top of the housing market will be the first to feel the impact of the turmoil in the City.
Until now the top of the London market has been relatively insulated from the problems that have beset the majority of the market at lower levels.
The collapse of Lehmans', the expected loss of 6,000+ jobs and the knock on effects on confidence in other institutions has reminded the high flying bankers of the Icaras-like ending that many could now face.
With so many getting burned we are bound to see demand even at the very top hit as buyers and sellers realise that the game has changed.
Sales down even in Mayfair
In the West End of London - where the bankers, sheikhs and oligarkes buy trophy homes - over 1150 sold for over £1m in 2007.
This business has been a life support system for London estate agents that their country cousins haven't had. In recent months even in central London the more 'average' properties have fallen by as much as 20% from last year's peak, but the 'uber-prime' has remained over subscribed.
In Mayfair alone the volume of property has shrunk to around a third of 2007 volumes with just 48 homes sold so far in 2008 compared to 136 last year.
Properties over £25m
But there are some reasons for optimism from the rarefied market in glamorous Mayfair where the number of sales so far in 2008 of homes over £10m is similar to that achieved in the whole of 2007 - the total value is actually substantially higher.
This month sees the launch of half a dozen trophy properties both in and outside London for over £10m - some even over £25m whose owners want to cash in their chips ahead of the inevitable financial freeze that this winter will bring.
The loss of 6,000 big City bonuses will mean that demand even at the very top will be limited by fewer buyers.
And the loss of so many salaries will mean that many will no longer be able to afford their huge mortgage repayments, which will add more chic properties to the pile of unsold homes - this time at the very top of the market.
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