The prime London property market is showing signs of increased activity following a slowdown after the EU referendum, according to top boutique London estate agency W.A.Ellis.
However the agency, which is part of financial and professional services firm JLL, warned that it is still too early to claim that the economic uncertainty that followed Brexit is behind the market.
Richard Barber, director at W.A.Ellis, said: “Although it is too early to say that the uncertainty around Brexit is behind us, there are positive signs of increased activity in the Prime Central London (PCL) property market.
“We have seen a marked increase in both enquiries and viewing activity this month, and have received over £35,000,000 worth of offers in Knightsbridge alone this week – all of which are within 5% of the asking price.
“It is clear that there is strong demand for high quality properties within PCL and that those attracting the most interest have been competitively priced, with motivated vendors prepared to sell in line with the current market.
“The outlook is positive; as consumer confidence grows, we are likely to see an increase in transactional volumes in the final quarter of 2016.”
Additionally the agency said it was seeing continued demand from the lettings market as students return to the market.
Lucy Morton, director and head of residential agency at W.A.Ellis, said: “The lettings market is also active, with demand from students returning to college remaining strong. Nearly 50% of the new tenancies agreed this week have come from international students.
“The strongest and most active areas of the market are still the one and two bedroom properties, accounting for 88% of the new tenancies agreed this week, meaning that three bedroom properties or more made up just 12% of new deals agreed.
“We anticipate this trend to remain for the next few weeks as the overseas students continue to return to London for the new academic year.
“As a result of the increased activity, the oversupply of lettings stock is reducing which should stabilise rents following a slight drop due to the abundance of property.
“Following the cautious first half of the year due to the referendum uncertainty, we have returned to normal market conditions for this time of year. However, the market is still price sensitive and the correctly priced properties will attract the best tenants.”