Blair factor gets Islington house prices on the move

The people of Islington, long the butt of right-wing humour, were laughing into the polenta yesterday with the news that the "Blair factor" had increased property prices by as much as 25 per cent.

Estate agents in north London were congratulating themselves that having a premier in their midst - albeit one who had decided to sell his house - had helped boost property prices in the Islington neighbourhood to prices reminiscent of its exclusive neighbour Hampstead.

Mr Blair, now installed in Downing Street with wife Cherie and their three children, has decided to sell his five-bedroomed home in a quiet crescent because of the huge security problem and its effect on their neighbours.

His spokesman said: "I can confirm that they are planning to sell the house. The family had hoped to stay in the house, but it became clear that this was an unrealistic proposition because of the cost to the taxpayer of securing it against terrorist attack, allied to the inconvenience caused to people living in the area. Therefore this was the only sensible thing to do."

Local estate agents expect the Prime Minister to make an even bigger profit than the reported pounds 240,000 experts say he can expect over the original purchase price.

The Blairs bought their three-storey home five years ago for pounds 375,000, but it is now thought to be worth at least pounds 615,000.

Local estate agent Daryl Lenhan of Bairstow Eves said the final figure may be much higher. "It is in a very popular location so it will fetch an inflated price anyway," he said. Surrounding properties are also expected to benefit from a higher valuation.

But those fancying a peek around the Blairs' former home are likely to be disappointed. Mr Lenhan said there were methods of deterring time-wasters.

"You act on the instructions of your vendor. They might ask you to vet people and get them to show proof of purchasing power."

The Blairs' house is near the top end of the Islington range. A similar Georgian house in the area is on the market for pounds 549,000.

Paul Williams, managing director of Holden Matthews, the agents who sold the property to the Blairs, said they were still awaiting instructions on what to do with the house.

Asked if he thought the property would fetch an inflated price because it belonged to the Prime Minister, Mr Williams said: "I don't think so, but it certainly wouldn't be a disadvantage to the sale."

However, William Fergusson, partner in Hugh Grover Estates, said that having Britain's First Family in situ had helped fuel a dramatic rise in prices. "It was certainly good for the area. It was a talking point, but to be fair Islington has been increasing in popularity for 3-5 years. The rise in the value of his house is entirely reflective upon the market and time that any individual sales go through." The Blairs, he said, were indicative of the kind of professionals and young families who were moving into the once run-down borough in droves: media and advertising people, professional legal sector, and those from the City.

A neighbour, who did not wish to be identified, said: "I am not sorry to see the Blairs go because I think it will make life for the rest of us a little easier."

Leading article, page 19

Places the politicians call home

Baroness Thatcher made a profit of pounds 200,000 on her Barratt's home in Dulwich in 1992. She and Denis had bought it seven years earlier for pounds 400,000, and they had hoped to move into it when she retired. But they decided they needed something classier and bought a five-bedroom house in Chester Square, Belgravia for nearly pounds 750,000.

The imposing symbol of Michael Heseltine's success is the historic mansion Theford House in Northamptonshire. With 800 acres of land, the estate may be worth over eight figures. Mr Heseltine also owns a house in Belgravia worth around pounds 1.5m, and a thatched cottage on Exmoor which he bought for pounds 250,000.

Jeffrey Archer's top-floor penthouse on the south bank of the Thames at Vauxhall has been valued at pounds 4m.

New-Labourites Barbara and Ken Follett have several homes. Rumour has suggested their house in Cheyne Walk, Chelsea is worth a couple of million, but Mrs Follett claims it was recently valued at pounds 750,000. As well as "a small flat in the south of France", they own a cottage in Stevenage, where Mrs Follett was recently elected MP.