Nervous stock markets could test confidence in the property market next year, estate agent Savills has warned.

But it said its international focus, including operations in Hong Kong, Europe and the US, would help it ride out any blips in confidence.

Chairman Richard Jewson said: "The group continues to trade strongly as we approach the end of the year.

"Nervous stock markets suggest that confidence may be tested in what seems likely to be an election year in the UK."

The news came as Savills posted a 20 per cent increase in half-year pre-tax profits, boosted by good UK demand, although not as overheated as earlier in the year.

It also enjoyed a strong performance in the Asia Pacific and Europe businesses.

Pre-tax profits for the six months to the end of October were £10.6 million, compared with £8.8 million at the same point last year. Turnover lifted by 71 per cent to £109.9 million, against £64.1 million last time.

In the UK, the group saw a strong market for commercial leasings and investment, while the residential housing market slowed after the boom seen earlier in the year.

In Hong Kong, FPD Savills Asia Pacific, created out of the acquisition of estate agent First Pacific Davies, was performing in line with expectations, he added.

Savills' US alliance with real estate firm Trammell Crow, formed in June, had made a good start "and is currently in detailed negotiations on two major European deals", said Mr Jewson.

The group's financial businesses had also made progress in the period, with Savills investing heavily in NetMortgage, its online mortgage facility.