Overseas buyers of prime central London property are getting a discount of more than 25% due to the volatility of sterling.

Knight Frank said the “effective discount” for buyers denominated in a range of overseas currencies was more than 25% in August compared with the period before the EU referendum in June 2016.

The agency said the discount has widened in recent weeks as political uncertainty rises in the UK.

There was good news in terms of price growth, though, with average prices down 4.4% annually in August, the most modest fall so far this year.

The number of prospective buyers was up 29% annually.

In super-prime lettings – defined as rents of more than £5,000 per week – there were 40 tenancies agreed during the second quarter of 2019, the highest level for this period in five years.

The number of new prospective tenants increased by 22% in the year to July 2019 in prime central and prime outer London, led by increases in north London and in the city fringe for homes up to £1,000 per week, Knight Frank said.

However, rents were down 0.2% annually.