Why psychics are the new therapists

Monday night in Chinawhite and Amy is a doormat. Or so Michael Korel, the club's resident psychic, is telling her.

'You let people impose on you,' he says, studying the 23-year-old marketing assistant's tarot cards. 'But I think you've got potential and should push yourself.' He flips over another card. 'You're getting a lot of court cards, which means you can become too concerned with what other people think you should be doing. Think for yourself.'

The next card brings happier news. 'I see a significant romance coming your way - maybe the love of your life.' Phew! Amy leaves happy, and the rest of her party pounce on Korel.

Right now, Korel is the most popular man in London's most copied club. Dressed in black with a red silk scarf around his waist, he styles himself as the 'vicar of Air Street'. He gives free tarot and palm readings to anyone in need of a little direction. The 33-year-old claims he's had the gift since birth.

'My grandmother, Rose, is my spiritual guide. She died when I was two and watches over me. When I was about nine, she taught me to read tarot in my dreams - like a correspondence course from beyond the grave - and when the course had finished, I mysteriously found a pack of tarot in my room.'

As well as the Chinawhite gig, this budding Russell Grant is much in demand: he writes astrology columns for several publications and was Pop Idol's resident numerologist. 'I've definitely been getting more business lately. The interest seems to have stemmed from the growth in alternative therapy like holistic medicine. People want to look after their bodies, so why not their souls as well?'

Londoners are beginning to treat tarot readers, palmists and clairvoyants as cut-price counsellors for everything from rocky relationships to landing a pay rise. Worried your toddler is too shy? Have their birth chart read to find out why. Think your secretary has a bad attitude? Consult an astrologer to read your staff's charts (it's common practice in France. 'It's not a matter of saying someone can or can't do their job, more about getting the best work out of them,' explains astrologer Andrea Soole). Unsure about whether to choose curtains or blinds? Contact domestic psychic Crystal Clear - whose clients include Omar Sharif and Boy George - and she will advise you on your home appliances and decorating needs. Yes, really.

London's psychic industry is booming. The Whole Life Festival, which promotes spirituality and psychic readings, has moved from Alexandra Palace to the much larger Olympia due to unprecedented demand. And Kay MacCauley at the College of Psychic Studies says, 'Ten years ago we were running 13 workshops in psychic development a term, and five courses. Now we're doing 50 of each and around 90 readings a week. Lots of people have questions that can't necessarily be answered by orthodox religion.'

Hot on the heels of Chinawhite is Yo! Below - both its bars employ tarot readers who wear white masseur's shirts and work in little booths - while over in Notting Hill, astrology meets afternoon tea at the Twelfth House restaurant. 'People in Notting Hill usually sit with their mobiles and cigarettes, but at Twelfth House astrology has encouraged them to switch off their phones and open up,' says owner and resident guru, Priscilla Fenton, who sells personal charts. 'The vibes are fantastic.' Booking a psychic has even become the latest party must-have. Tarot reader Aristos Psaras recently returned to the UK after five years in Las Vegas and is regularly hired for private parties. 'In the US, it was common to hire a clown to entertain the kids and a psychic for the adults. I'm not surprised the psychic thing is taking off in London. It's become so much more acceptable.'

Helen Brocklebank - a 'mobile psychic' who arrives at readings on a moped - reckons ambition coupled with the need to be in control tempts many Londoners to visit a psychic. It's simply another problem-solving technique. 'We're living in a fast-forward age, so it's useful to get an idea of what's coming up. Forewarned is forearmed. The majority of my clients are professionals, and they don't have time to fail. So they're looking for solutions to make failure less of an option. If they know what will happen, it helps them lessen the risk. They don't want to leave anything to chance.'

A cosmic consultation also comes in handy when you're on the singles scene. Sarah, 35, has regular meetings with a psychic - 'to get a planetary update' - and sends her the birth data of every new man she meets for a compatibility reading. 'Right now, I'm with an insanely beautiful Aries. Our charts suggest our connection is purely sexual, and that's not enough to make it a big love. Astrology helps me manage my expectations.' This type of therapy-speak is common. If nothing else, a self-help session with a psychic is the perfect opportunity to focus on yourself.

Of course, celebrities have always been into anything New Agey. Annie Lennox, Meera Syal, Louis Theroux and Ruby Wax have all been spotted at spiritual fairs, and Kate Moss, Luella Bartley and Katie Grand regularly see the same palmist. Psychic Lee Catt reckons most of the A-list and many politicians have consulted a psychic, 'probably because they travel extensively and are open to different experiences'. But their motivation can be mundane: 'If you're at the top of the tree, and you want to make sure you don't end up at the bottom, a psychic can make you aware of the part other people play in your success. Celebrities have invited me to parties and asked me afterwards if a particular person they're thinking of agreeing a contract with is trustworthy. One woman who worked in politics wanted to know if two affairs she'd had in the past were likely to come out and damage her career.'

However, it's men who are fuelling the psychic boom. 'Recently, I've noticed more men seeking me out,' says Amanda Scott from Yo! Below. 'They tend to ask for palm-reading rather than tarot, perhaps because a physiological justification seems more logical.' Korel also reports that he's reading more male palms. 'Last week, I was pursued up the Chinawhite stairs at 2am by a guy desperate for a reading. Often, we'll start with the usual stuff - work, relationships - but as I push their buttons, a deeper dissatisfaction comes to the surface, perhaps confusion about their place in society. I like to think I'm offering a kind of guidebook for the future.'

But this guidebook doesn't always offer the best - or most accurate - advice. Dr Christopher French, a psychologist at Goldsmiths College who specialises in psychic phenomena, is sceptical about most psychics' abilities: 'Many have perfected the "cold reading" technique that anyone can learn. It's about sounding perceptive and coming out with generalisms and truisms such as, "Have you ever felt like the life and soul of the party when you're racked with insecurity inside?" Of course, they're not all con artists; some genuinely believe they have a gift and, quite frankly, are fooling themselves as much as they are fooling anyone else.'

French believes that while most people view visiting a psychic as a bit of harmless fun, those who take it more seriously are a real worry. 'If you're an internal person, you believe people are responsible for their own lives, whereas if you are external, you believe in destiny and things being beyond your control. Not surprisingly, we've found out that external people are more likely to go to psychics for advice. In the short term, this can be beneficial, but long term, it could become a problem if the predictions don't turn out and they feel disappointed.'

Korel agrees - and is concerned when his clients treat him as a counsellor. 'There was this lady who, after I saw her, said, "OK, same time next week?"' She was mistaking me for her therapist. I help people identify their blocks but then they have to help themselves and open their own doors. I'm not a guru, remember.'

Psychic London address book