Foxtons has reported a 42% fall in profits, with uncertainty surrounding the EU referendum being cited as the reason for the decline. However, the company was still able to report a pre-tax profit of £10.5m during the first six months of the year, down from the £18.1m reported during the same period a year earlier.

According to the estate agency there had been a "sharp contraction" in the London property market during the second quarter of 2016.

Property prices in London have grown substantially in recent years partly due to the markets attraction to overseas investors. However, prices have reportedly slowed this year, which has been partly attributed to a new stamp duty surcharge coming into force that impacts overseas buyers.

With market conditions weakening Foxtons has decided to review the pace of new branches being opened in London.

Market analysts have been somewhat split over the impact that the Brexit vote will have on the London property market, although it was expected that other areas of the country will be less affected.

Despite the slowing residential sales market in London, investors have recently snapped up student accommodation in Leeds, with some able to realise additional gains due to the fall in value of the pound, following the UK's decision to leave the EU.