Savills lifted by demand from abroad

While the lack of mortgage lending remained a “significant obstacle” for the wider market, it said foreign investors increasingly saw central London as “a store of value in turbulent economic conditions”.

The strong market in London drove a 9 per cent sales hike in the group’s UK residential transactions business, while profits rose 11 per cent to £14.8m.

It reported growing signs that homeowners in London, where prices have bucked the national declines in recent years, are now considering moving to the home counties where they will enjoy “purchasing power” in more depressed markets.

Savills benefited from the popularity of new upmarket projects such as One Hyde Park and said prime central London postcodes continue to be in strong demand.