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Bonus tax could hit property sales

First Action Finance head of communications Jonathan Cornell says the 50 per cent tax on banker bonuses could hit property sales.

Cornell says this is an area which normally sees a boost from bonus season, meaning estate agents could suffer.

He says: “The 50 per cent tax paid by banks on bonuses to bankers is clearly going to make it much more expensive for banks to pay their top bankers the bonuses which they were expecting in the next few months.

“This is going to be very bad news for many companies which traditionally benefit from increased sales during bonus session.

“This is going to impact high end car dealership, jewelers and estate agents.”

Cornell adds: “Property has always been a popular area for bonuses. I suspect that in the coming months lenders will further reduce the amount of bonuses which borrowers are allowed to use to support their new mortgage.”

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