Aug. 23 (Bloomberg) -- Buyers of London houses and apartments costing about 2 million pounds ($4 million) are delaying purchases on concern the turmoil in credit markets may result in lower bonuses for bankers.

``Last week's turbulence in the markets in London and the U.S. is creating some serious caution,'' Christopher Bramwell, a director in Savills Plc's London residential department, said in an interview. ``Buyers at this level look more to the financial markets and are less affected by interest rates.''

Traders and executives in London's financial industry were paid record bonuses totaling an estimated 8.8 billion pounds last year. That may fall by as much as 15 percent this year, said Jonathan Said, senior economist at the Centre for Economics and Business Research Ltd.

``There are a number of people who are holding back,'' Liam Bailey, head of residential research at London-based brokerage Knight Frank LLP. ``September will give the first steer of how this will play out on the property market. It's very early to say at the moment.''

Asking prices in Kensington and Chelsea, London's priciest borough, fell 1 percent this month to an average of 1.45 million pounds, Rightmove Plc, which runs the U.K.'s largest real estate Web site, said in a report Aug. 20.

Holding Back

One Savills client has decided not to go ahead with buying a property they'd agreed to purchase because of the turbulence in the markets, said Bramwell.

Knight Frank this month sold 12 of 22 apartments being built at the Imperial Wharf development on the north bank of the River Thames in London that won't be ready for as long as 18 months, said Rupert Dawes, a partner in the firm's London residential development department. The properties cost 550,000 pounds to 2 million pounds. No one has yet canceled, he said.

The firm already had a waiting list of potential buyers for the next phase of the project, said Dawes. There is demand for developments by the Thames, with only four under construction at the moment, said Dawes.

Imperial Wharf is situated in a 10-acre park between Chelsea and Fulham next to Chelsea Harbour and scheduled to have 1,600 apartments when completed, as well as offices, shops and leisure facilities. A new rail station is opening nearby later this year.

Houses in the 2 million-pound range are considered mid-level luxury homes in London. Properties at the top end of the market, those costing an average of 5 million pounds, have risen 36 percent in the past year as foreign buyers join Britain's very wealthy to compete for a shrinking number of trophy houses, according to Knight Frank.

The banking bonus season runs from November to March and the level of payouts will be determined by third quarter earnings, said Michael Karp, chief executive officer of the Options Group, a New York-based firm that tracks pay and hiring trends.

To contact the reporter on this story: Peter Woodifield in Edinburgh at pwoodifield@bloomberg.net.

Last Updated: August 23, 2007 12:13 EDT