The Telegraph reports on an 18% increase in Kensington and Chelsea house prices in a nine-week period up to December 12. The figure's courtesy of Rightmove, and the trend is courtesy of the much heralded City bonus bonanza. But is it really about a City bonus bonanza; or all the talk of City bonus bonanzas combined with a little vendor price fixing? Property writer Ross Clark delves a little deeper, talks to estate agents, and reports back:

"There are a lot of vendors out there who feel they have scented blood," says Tangney [Tom Tangney of Kensington's Knight Frank]. "Two or three months ago they might have accepted an offer, but now they are turning them down, in the expectation that prices will rise. There is a real sense of greed out there."

The picture that emerges is one of bankers showing restraint and limiting themselves to purchases of between one and one-and-a-half million pounds. Certainly, the five-million-and-above sector looks like it's being paid for in rubles. In the meantime, Kensington and Chelsea's greedy vendors need to be very careful indeed. The full story, here.

£2.25 million starter home [November 23]
Rich to get richer than Richie [November 8]
City bonuses eyed by estate agents [October 4]