City bonus postcodes - No.1: Chelsea, SW3

It's the No.1 destination for any City high roller looking for a London address and also beloved of rock legends and the blue-blooded. So has this year's bonus race been pushing up prices?

picture of kings road sign in LondonChelsea is perennially popular with British and foreign buyers from the City, but Ed Mead of, Douglas & Gordon, is not expecting a bonanza this year: “I think the bonus market will be more muted this year because of restrictions in payouts; cash vs equity and so on.

The traditional bonus market would see a lot of activity in trophy addresses – Eaton Place, Burton Court, Sloane Square, Onslow Square – where prices start at around £3m. 

“Some of this will still be there – we’ve just sold a large flat in Cheyne Gardens to a US banker over the asking price – but I think this year we’ll see more bonus buyers lower down the food chain, in places like Onslow Gardens, Evelyn  Gardens, Redburn Street, and Elm Park Gardens (garden squares tend to be very popular). The price range here for a two-bedroom flat is £500k to £1.5m.

“Some of these will be purchasing main residences, and some will be buying a pied-a-terre. The investment market looks good right now – rents are up 20% and buy-to-let is on the increase.”

What about the prices?
Primelocation Index says: +11% over the past year.

Celebrity residents: Lily Allen, Jamie Bell, Hugh Grant, Mick Hutchence, Kylie Minogue.