Property prices in prime central London see sharpest fall in nearly seven years
But Knight Frank says there is room for 'cautious optimism' amid surging buyer interest in prime London.
due in part to the seasonal summer lull," said Tom Bill, head of London residential research at Knight Frank.
"However, there are grounds for cautious optimism that activity will intensify over the next few months, as recent stamp duty increases and, to a lesser extent, the vote to leave the European Union continue to act as catalysts for overdue price adjustments.
"It is still early for firm conclusions of future market moves following the EU referendum, however the worst of the initial forecasts appear to have been avoided to date. The tentative improvement in some demand indicators provide grounds to believe the prime central London market is set for at least a modest recovery in trading volumes, whether this translates into an uptick in pricing is less clear."