Transactions in the wealthiest parts of London began to bounce back in the final three months of 2016, an upmarket agent has claimed.

JLL – formerly WA Ellis – said transactions rose 36% between the third and fourth quarter of last year. Despite that, volumes were still down 24% year-on-year.

Price drops slowed as well, with the average fall at 0.1% in quarter four, compared with 0.2% in quarter three and 1.1% and 0.9% in the first and second quarter of 2016 respectively.

Richard Barber, director of residential agency at JLL, said: “Q4 saw a marked upturn in transactional volume throughout prime Central London with some notable high value sales.

“Whilst some values have undoubtedly slipped throughout 2016, it was interesting to note that exceptional properties were still commanding high rates per square foot and on a similar level with 2014 peak values.

“Much of this activity can be accounted for by the weakness  of sterling and stronger  post-referendum sentiment. Whilst this is encouraging going forward, the market will still  be mindful of potential external influences such as the road towards a hard Brexit during the course of 2017.  Nevertheless, both Prime Central London demand and sentiment now appear to be stronger.”

The figures were less positive on the rental side with average rents falling 3.1% in the fourth quarter and sliding 8.6% lower over the whole of 2016.

Lucy Morton, head of agency at JLL, said: “There continues to be strong demand for apartments in new developments as tenants buy into the lifestyle of concierge, gyms, business facilities and smart living with easy access to the City.

“Overall, fewer overseas families moved to London with companies in 2016 compared with previous years as organisations preferred to house their senior directors in high-end one- and two-bedroom apartments to use more as a pied-à-terre while leaving their families at home.

“There was another year-on-year increase in demand from high net worth international students last year and we anticipate this will increase again during 2017.”