Don’t blow a bonus to join the property surge

Bricks and mortar funds are back but the outlook for prices is far from clear

Buy-to-let investors are returning to the market - and for those without big City bonuses to plough into bricks and mortar there are cheaper ways through the door.

More surveyors reported a rise in inquiries in the three months to September and Savills, the estate agent, said that City bonus money is driving the resurgence: £1.2 billion of this year's bonus payments is expected to find its way into the property market, notably in London and the southeast.

"City bankers who see the stock market as overvalued and deposits and bonds as low-yielding look on 5%-plus yields from residential lettings - and the prospect of good, long-term capital growth - as an attractive return," Savills said.

Buy-to-let finance remains difficult to come by but for