Knight Frank has shrugged off a 66% drop in full-year profits, insisting the stricken property market is bouncing back and its business remains in rude health.

The upmarket estate agent, which sold Compton Bassett House in Wiltshire for about £8.5m to the pop star Robbie Williams early this year, said house prices were stabilising and residential sales during August were up 37% on the same time last year.

Nick Thomlinson, senior partner and chairman of Knight Frank Group, said commercial property prices also appeared to have hit bottom after a slide of almost 50% in the past 18 months.

Sunday Times