New rules on how much Indian nationals can send abroad for investment are helping drive the top end of the London property market, an agent has claimed.

Camilla Dell, managing partner of buying agency Black Brick, said that since 2015 the annual limit per person for investing abroad was raised to $250,000 – meaning that a husband and wife can remit $500,000 each year, and a family of four, $1 million.

Many are now at a point where they have enough funds to enter the London market and 30% of new buyer enquiries come from resident Indians, she claims.

Dell said: “Enquiries so far reflect the limited amount of time that has elapsed since the limit was raised, with Indian buyers tending to look for property around the £1m mark, either as a pied-a-terre or as a buy-to-let investment to provide portfolio diversification.

“We expect this trend to continue, given the historic links between the UK and India and especially with Indian entrepreneurs seeing opportunities in the UK post Brexit.”

Dell said there is still uncertainty in the prime markets due to recent Stamp Duty hikes, but she said there are still opportunities, adding: “While there is less supply coming to market, those who are selling are highly motivated, and vendors now know that they have to be realistic on pricing, and be prepared to negotiate.

“This means that buyers can strike bargains. This is especially the case for cash purchasers who are able move more quickly than those seeking finance, making them a preferred option for sellers who will often take a lower cash offer.

“Secondly, those buyers in a position to take the longer view should put Stamp Duty charges and shorter-term market volatility in context. For all the uncertainty about the next year or so, property analysts expect 15-20% of capital appreciation over the next five years.”

It is worth noting, though, that many will pay around 15% Stamp Duty on a prime property, so given the 15-20% growth rate forecasts, it may take a while for purchasers of London’s most expensive homes to see any return.