Estate agent Foxtons (LON:FOXT) warned that a housing shortage could hold back a sales recovery as it reported higher revenue but lower profit.
The group also cautioned about a potential impact from tax changes and uncertainty surrounding the outcome of the UK's EU vote in June.
Chief executive Nic Budden said: "We expect some growth in the sales market in 2016, but continue to believe a recovery in volumes will be affected by a low level of stock.
"It is too early to predict how transaction volumes may be impacted by recent changes to the tax regime and the short-term political and economic uncertainty caused by the UK referendum."
The group reported a 4.1% rise in revenue to £149.8mln but adjusted pre-tax underlying earnings fell 0.4% to £46mln. Pre-tax profit dropped 2.6% to £41mln.
It proposed a 13.4% rise in total dividends for the year to 11p per share. Foxtons has returned £73.5mln to shareholders since its initial public offering in September 2013.
Foxtons said property sales within the London market as a whole remained subdued throughout the year.
In particular, the increase in activity expected by many following the General Election in May 2015 did not arrive and, as a result, 2015 property sales within Greater London were well below levels in 2014.
Activity in central London property markets took a particular hit due to strong recent price growth and stamp duty changes, which it said significantly increased the cost of moving home.
But Budden said: "Looking ahead, the London residential property market continues to be highly attractive both in terms of sales and lettings.
"We have entered the new year with an encouraging sales pipeline, a strong letting book and a clear strategy for further growth through our branch expansion."
Shares increased by 1.75p, or 1.1%, to 160p.