Why bankers love the people’s recession

Sporting an expensively tailored suit and a Swiss watch, the 42-year-old banker had all the swagger of the boom years. “The flat was immaculate, yet he wanted to rip it apart and do it up from scratch,” said Charles McDowell, who runs his own estate agency. “He said he wanted to throw an extra £1m at it, including installing a cinema room. People are scattering the cash again.”

Figures from Knight Frank, a top-end estate agent, show the number of City buyers as a proportion of applicants has grown to 38% — the highest since March last year.

“The bonus effect is only just beginning to be felt,” said Liam Bailey, head of residential research at the agency. “The hitherto weak £5m market has sparked into life.”

Vintage champagne is also flowing again at Coq d’Argent, near the Bank of England. For years a favourite of the Square Mile’s bankers, the wallets and belts of its clientele tightened when the credit crunch struck. That has changed.