Prime residential market conditions improved at the end of 2016 after a tumultuous year, according to the LonRes residential review.
It said the drop in prices predicted post-referendum failed to materialise, while price cuts and currency fluctuations made central London attractive once more.
Prime central London prices increased by 2.8% in Q4 on Q3, the first time there had been quarterly growth since 2015. Prime London and prime fringe prices also rose, up 2.6% and 2.8% respectively.
Transaction volumes also rose, though they were still well down on 2015 levels. In Q2 2016, prime central London saw 51% fewer transactions than the same period in 2015, however by Q4 volumes were just 11% lower.
LonRes said its survey suggests that agents are a little more pessimistic than the consensus forecasts, which predict little or no growth in 2017.
64% expect prices to fall, compared with just 13% expecting a rise. However the transactions outlook remains slightly more positive, with 32% of respondents expecting an increase in transactions this year.
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