London property solicitors will be looking forward to the first homes coming on the residential conveyancing market from a new luxury development firm which is part-owned by entrepreneur James Caan of TV's Dragons' Den, but at the same time there is a warning that signs of a slowdown are emerging.

Caan has linked with Kam Babaee, of London high-end developer K10 Developments Ltd, to form Hamilton Bradshaw Real Estate which has made its first acquisition, said to be valued at more than £20m.

He said the property market was separate from the rest of the UK and, at present, there were simply not enough luxury properties on the market."

Hamilton Bradshaw is looking at investment sites and refurbishing properties within a five-minute taxi ride from Knightsbridge but the quarterly Central London survey from agent Savills says that the area is one where prices in the third quarter are set to fall by 0.9%.

According to the research, property sellers in Chelsea, Belgravia, Mayfair and Marylebone will find that although there were still overseas buyers helping to hold up demand of £1m-plus homes, there had been a fall in inquiries partly due to uncertainty over the impact of the Government's austerity measures.

London property solicitors who had handled conveyancing in Kensington, Holland Park and Notting Hill were the busiest in the period July to September, with prices increasing by 2.1% in the quarter.