The worst of the post Brexit vote predictions appear to have been avoided so far in prime central London, Knight Frank has claimed.

The agent’s Prime Central London Index for August found that while annual price growth declined at its steepest level since October 2009, dropping 1.8%, the numbers of viewings and properties under offer are still on the rise.

According to the index, there has been a 22.1% rise in the number of new prospective buyers since the EU referendum in June versus the same period in 2015.

The number of properties under offer in the eight weeks since the Brexit vote rose 19% compared to last year while web viewings grew by 20.8% and actual viewings increased by 49% compared to last year.

Tom Bill, head of residential research for Knight Frank, said: “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.”

However, the rental market in prime central London appears to be having a tougher time as increased supply has pushed down rents.

The number of new rental properties placed on the market in the three months to July rose 38.9% while rental values declined -4.1% in the year to July 2016. This kept average gross prime yields flat at 3.1%

Bill added: “Due to the mood of cautious optimism returning to the sales market, some would-be landlords plan to wait until later this year before renting out their property in the expectation that demand in the sales market will strengthen.”