An estate agent has predicted that next year the London property market will see similar transaction volumes to 2011.

Kinleigh Folkard & Hayward believes that house prices will be up by 7% in early 2012 but will them fall back to an overall 1-2% increase by the end of year.

Lee Watts, managing director of Kinleigh Folkard & Hayward, said: “Overall I anticipate 2012 to deliver a similar total of property transactions to 2011. I believe the first half of 2011 will be considerably stronger than the second with early price gains eroded as the year goes on.