New data from LonRes shows that prices of homes in three key prime areas of London tumbled 5.7 per cent last year.
Over the fourth quarter of 2018 no fewer than 56 per cent of properties sold in the market had seen a price reduction prior to sale.
Some £2.9 billion of housing stock was sold in the prime central London area in 2018 compared to £3.5 billion in 2017.
And in the fourth quarter of last year new instructions fell by 20 per cent compared with the same period last year.
Meanwhile transactions in Q4 2018 were down 13 per cent compared to Q4 2017.
At the root of the uncertainty lies Brexit: some 69 per cent of respondents to the LonRes Agent Survey reported that Brexit remains the biggest drag to demand in the year ahead.
Marcus Dixon, head of research at LonRes, says: “In an uncertain market the response by both buyers and sellers in prime London has been to hunker down and observe rather than participate. This is impacting on both transaction levels and prices. However for those willing to buy, there are opportunities to be had and purchasers are negotiating accordingly.”