Grosvenor Group has reported a slight dip in revenue profit as the luxury property market slows down in London.

In its annual results, the property developer recorded a total return of 8% in 2016 (2015; 9%), with revenue profit down from £83.3 million in 2015 to £79.2m in 2016.

Following six successive years of UK returns above 10% on property investments, total returns declined to 0.3% in 2016 (2015:10.7%).

Mark Preston, Chief Executive, said a slowdown in the London residential market is due to investor and occupier unease caused by the UK's EU referendum, as well as the imposition of higher stamp duty on purchases.

However, with just under half of the Group's assets outside the UK, Mr Preston the company still managed to deliver "solid returns".

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"Strong performance from Indirect Investment and our operating companies in North America and Asia, significantly boosted in Sterling terms by its depreciation against other currencies, offset cooling market conditions in London," he said.

"Looking ahead, we expect our returns in 2017 to be significantly weaker due to limited room for market value appreciation and a reduction in revenue profit following some well-timed disposals.  The proceeds of these sales will be re-invested into our £6bn pipeline of projects to be delivered in several years' time, resulting in a recovery in returns."

In 2016, Grosvenor secured planning approval in key locations in London to deliver new retail, leisure and community spaces, a creative hub for entrepreneurs and independent retailers, and a hotel. In addition, it's Barton Park joint venture with Oxford City Council to create a 26-hectare garden suburb, and the Trumpington Meadows 1,200 homes neighbourhood development in Cambridge, also remains on track.

Substantial progress was also made on its plans to create and manage a new urban neighbourhood in Bermondsey, with planning proposals to be submitted later this year. The company has also unveiled plans to make Mayfair & Belgravia "more active, more open and more integrated".

(LM)