Knight Frank has reported a record turnover, despite experiencing a 20% fall in exchanges on homes worth over £750,000 since the EU referendum.

However, the firm conceded that the aftermath of the Brexit vote has been “less dramatic” than feared, with volumes and prices down but activity gradually recovering.

The number of offers being made is just 6% lower than last year, while offers accepted are 6% higher. The number of prospective buyers has also risen.

The firm says this is likely to lead to an improvement in sales volumes in the final quarter of this year, although the market is still likely to be smaller than last year due to factors such as the Stamp Duty increase on the purchase of second homes.

In its results for the year, Knight Frank posted turnover up by 4%, to £460.9m, but a slide in pre-tax profits – down 4.7% from £160.1m last year to £152.6m.

The fall in group profit was mainly due to the company taking on new staff, Knight Frank senior partner Alistair Elliott said.

“We have been increasing our recruits strategically – more in the last year than for a long time,” he said.

“There is inevitably a lag between that and productivity reaching the levels we would like. There is also an ongoing requirement to constantly invest in the technology and digital arena.”

Knight Frank has recruited senior staff from other agents, and took on 50 of Deloitte’s real estate team in April.

The global firm – Knight Frank employs over 14,000 people in 59 countries – said there had been changing sentiment in China and the US, hitting market values.

Elliott said: “There is no question that the majority of residential and commercial markets were beginning to peak in the autumn of last year.”

Knight Frank’s 550 partners will share a bonus pot of £84m, up from £80m last year.